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Equitas Holdings Pvt Ltd, a leading, Chennai-based microfinance and micro-housing finance company, has equity capital of Rs 140 crore.
IFC, Washington, the arm of the World Bank that gives equity and debt funds to private sector companies, has put in Rs 90 crore. Microventures and India Financial Inclusion Fund, both existing investors of Equitas, have together invested the other Rs 50 crore.
Spark Capital was the financial advisor to the transaction.
Equitas Holdings recently diversified into financing for used commercial vehicles (Equitas VF) and affordable housing (Equitas HF) through wholly-owned subsidiaries. The equity capital raised would be used to capitalise the three subsidiaries and grow the respective businesses. Equitas VF and Equitas HF commenced business in June 2011 and are in the process of scaling up their network and operations. Equitas operates its three businesses through more than 350 branches across nine States and has an outstanding loan portfolio of Rs 1,125 crore.
Equitas Holdings has already been invested in by a set of marquee investors including CLSA, Sequoia, Aavishkaar, SIBDI, Canaan Partners, Aquarius and Helion Ventures.
Equitas has a borrower base of 1.3 million across five States.
“The reach of microfinance within the country continues to be limited with most of India's population having limited or no access to financial services,” said Thomas Davenport, Director for IFC South Asia. “We will work with Equitas to promote a more balanced growth of microfinance in India by supporting an institution that promotes responsible financing.”
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