MFI Ujjivan raises Rs.127.9 Crores (USD 25.5 Million) in equity

Ujjivan Financial Services, one of India's leading urban poor-focused microfinance institutions, raised Rs. 127.9 Crores (USD 25.5 Million) in its fifth round of equity funding. Two new Foreign Institutional Investors FMO (Netherlands Development Finance Company) and WCP Mauritius Holdings III (Wolfensohn Capital Partners) and existing investors participated in this round.

Bengaluru, Karnataka, February 1, 2012 /India PRwire/ -- Ujjivan Financial Services, one of India's leading urban poor-focused microfinance institutions, has raised Rupees 127.9 Crores (USD 25.5 Million) in its fifth round of equity funding. Two new Foreign Institutional Investors FMO (Netherlands Development Finance Company) and WCP Mauritius Holdings III (Wolfensohn Capital Partners) and existing investors participated in this round.

Speaking on the funding, Mr. Samit Ghosh, managing director, Ujjivan said, "We thank our existing investors who continue to reiterate their commitment to us and welcome our two new investors. This round of equity funding will make Ujjivan one of the best capitalised MFIs in the country". With this round of equity funding, the last being in 2009, Ujjivan's capitalisation has more than doubled to Rs.2300 million. Kotak Investment Banking was the advisor and arranger of the transaction.

Mr. Sanjiv Kapur, managing director, Wolfensohn India Advisors Pvt. Ltd. said "This is the first investment for Wolfensohn in the Indian microfinance sector, endorsing our faith in the sector and in Ujjivan's financial inclusion model".

Mrs. Sudha Suresh, Ujjivan's chief financial officer indicated that the additional capital will help increase the loan book from the current Rs.600 Crores to around Rs.1600 Crores given the Reserve Bank of India's 15% capital adequacy requirement for NBFC-MFIs.

"We are very happy to work with Ujjivan, which is constantly searching for ways to better serve the urban poor. Their firm focus on their mission to alleviate poverty and strong business credentials make Ujjivan a very interesting partner for FMO" said Mr. Keesjan de Kruijf, senior investment officer, FMO.

Ujjivan's existing investors which participated in the fifth round of funding include Lok Capital, India Financial Inclusion Fund (Caspian Advisors), Sequoia Capital, Mauritius Unitus Corporation and Elevar Equity.

"India continues to be a preferred investment destination for FIIs and it is heartening to see that fundamentally strong organisations in the microfinance sector are a key focus", added Mr. Mohit Bhatnagar, managing director, Sequoia Capital. It is the largest stakeholder in Ujjivan.

"When we look for large MFIs which are truly client centric, transparent, have good systems, great leadership, and are sincere in its social objectives, Ujjivan is the only MFI which comes to mind. Our investment thesis is built around making it the borrower of choice for the base of the pyramid, across the country", said Venky Natarajan, managing partner, Lok Capital.

Ujjivan serves over a million clients in 20 states including 49 under-banked districts across the country and does not have a presence in Andhra Pradesh. Recently, Ujjivan received the Microfinance Organisation of the Year award and ranked No.1 in the Microfinance Industry as the Best Company to Work for in India.

Note:

Investors in fifth round equity funding: Lok Capital: Rs.100 Million | Sequoia Capital: Rs.100 Million | Mauritius Unitus Corporation: Rs.25 Million | Elevar Equity: Rs.125 Million | India Financial Inclusion Fund (Caspian Advisors): Rs.200 Million | WCP Mauritius Holdings III (Wolfensohn Capital Partners): Rs.400 Million | FMO (Netherlands Development Finance Company): Rs.326 Million

Notes to Editor

About Ujjivan Financial Services Limited:

Ujjivan Financial Services, a microfinance institution (MFI), started operations in Bangalore in 2005 and is a member of Grameen Network, Bangladesh. Ujjivan serves over 1 million urban and semi-urban poor customers in 20 states across India with 3600 employees at 302 branches. It has disbursed loans of over Rs.28 Billion with a repayment rate above 98%. It has a strong financial literacy program and conducts healthcare, education and vocational training programs for customers in collaboration with sister non-profit organization, Parinaam Foundation. In jointly funded programs with staff, Ujjivan also provides emergency disaster relief to customers and staff across the country. www.ujjivan.com.

About FMO:

FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on four sectors that have high development impact: financial institutions, energy, housing, and agribusiness. With an investment portfolio of EUR 5 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl

About Wolfensohn Capital Partners, L.P:

Wolfensohn Capital Partners, L.P. is a private investment fund specializing in growth equity investments in emerging markets. The fund has a particular expertise in the financial services sector and is led by James D. Wolfensohn, a former President of the World Bank (1995-2005) with a distinguished career as an international investment banker, listed company board member and public servant. The investment in Ujjivan is made by WCP Holdings III, an affiliate of Wolfensohn Capital Partners, L.P. www.wolfensohn.com

Journalists and Bloggers
Visit India PRwire for Journalists for releases, photos, email alerts and customized feeds just for Media.

If you have any query regarding information in the press releases, please contact the company listed in the press release itself. Please do not call India PRwire, we will be unable to assist you with your inquiry.


Ujjivan recent press release(s)


Ujjivan raises equity of Rs.47.28 Crores (USD 9.2 million)

Ujjivan Financial Services, one of India's leading urban poor-focused microfinance institutions, has raised Rs.45 Crores (USD 9 million) equity capital from IFC, a member of the World Bank Group while Foreign Institutional Investor FMO (Netherlands Development Finance Company) invested an additional Rs.2.28 Crores (USD 0.45 million) to its earlier investment of Rs.32.6 Cro...

Ujjivan posts positive results in 2011-12

In a challenging year for the microfinance sector, Ujjivan Financial Services recorded 12.5% portfolio growth, ending financial year 2011-12 at Rs.703 Crores with a Profit before Taxes of Rs.2.19 Crores. Its customer base grew to over 1.04 million across 20 states and Union Territories. Ujjivan's operations in Maharashtra & Gujarat in West and in Haryana & Punjab in North ...

Ujjivan: Only Indian MFI to receive highest award for Social Performance

Ujjivan Financial Services, one of India's leading urban poor-focused microfinance institutions, has won the Platinum Award for Social Performance Management and Reporting. The award is presented by MIX (Microfinance Information Exchange), in collaboration with CGAP, a World Bank body, Ford Foundation and Michael & Susan Dell Foundation.

Ujjivan Raises Rs.45 Crores through Non-Convertible Debentures

Bangalore-based Ujjivan Financial Services Private Limited, a microfinance institution (MFI), has raised Rs.45 Crores (USD 10 Mn.) by way of private placement of Non-Convertible Debentures (NCD). Standard Chartered Bank is the sole book runner and lead arranger of the issue.

Ujjivan Posts Profits, Reduces Interest Rates

Ujjivan Financial Services, a microfinance institution (MFI), recorded its first year of profitable operations with a post-tax profit of Rs.9.63 Crores in the financial year 2009-10. Ujjivan has also reduced interest rates by 1.9-2.9% for all new loans and renewals.