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Microlender Ujjivan Financial Services announced here today that it has raised Rs 600 crore from a clutch of investors, including CX Partners Fund I, CDC Group, New Quest Asia Investments and Bajaj Holdings.
Existing investors IFC and Elevar Equity Mauritius have also invested in the transaction, which the company claimed is the largest ever of its kind witnessed in the microfinance sector.
“This equity transaction is the largest in the sector and it reaffirms Ujjivan’s inherent strength in terms of its excellent growth and profitability with strong governance,” Ujjivan Financial Services Managing Director and Chief Executive, Samit Ghosh said.
Funds which have been raised would be used to expand the loan book across products, including joint liability group lending and individual lending to economically active poor.
The transaction which was advised by Avendus Capital is a combination of primary issuance of shares and partial secondary exits to a few of its existing shareholders, Avendus said in a statement.
“The level of interest witnessed in this transaction from financial sponsors and development financial institutions is a testament to the prospects and potential of the sector,” Avendus’ Executive Director, Ritesh Chandra said.
Ujjivan was founded in 2005 and manages gross assets of over Rs 3,100 crore. It has 423 branches in 21 states and three union territories.
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