IFMR Capital, which helps financial institutions serving the bottom of the pyramid population access funding, has raised about ₹165 crore ($25 million) from Eight Roads Ventures, the proprietary investment arm of Fidelity International Ltd.

It will use the money to grow its existing business and explore other opportunities across new products and sectors, according to a press release from IFMR Capital. This is the second round of institutional funding in the Chennai-based IFMR Capital; it raised $29 million in the first institutional round from LeapFrog in March 2014. With this round, LeapFrog has partially exited its investment in IFMR Capital, which is majority owned by IFMR Holdings.

Established in 2008 with a focus on the micro-finance sector, IFMR Capital has since expanded its client base to more than 100 financial institutions in affordable housing, small business, vehicle, agriculture finance and small finance banks. It has facilitated debt financing of nearly ₹35,000 crore to these institutions. It has also launched three domestic funds offering mid- to long-term debt funding to its partner originators.

comment COMMENT NOW