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 Crores (USD 6.52 million).

Bengaluru, Karnataka, September 18, 2012 /India PRwire/ -- 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 Crores (USD 6.52 million).

In January, Ujjivan raised Rs.127.9 Crores (USD 25.5 million) in its fifth round first tranche of equity funding. With this second tranche, the total equity investment of Rs.175.18 Crores (USD 35.03 million) is one of the highest raised by an MFI in India this year.

Speaking on the latest funding, Ujjivan's Managing Director Mr.Samit Ghosh said, "This is a reiteration of IFC's and FMO's faith in India's microfinance sector, demonstrating that it continues to be fundamentally strong. Ujjivan is already one of the best capitalised MFIs in the country and this funding will help in strategic growth aligned with the changed regulatory environment".

"Since the microfinance crisis, IFC has been focused on investment and advisory services targeted at helping the microfinance sector expand its outreach to low-income households in India," said Thomas Davenport, Director for IFC, South Asia. "We will work with Ujjivan, an institution that promotes responsible financing, for a more balanced growth of microfinance in India."

With its capitalisation increasing to Rs.275 Crores, Mrs. Sudha Suresh, Ujjivan's Chief Financial Officer indicated that the additional equity will comfortably ensure its regulatory capital adequacy requirements over the next 3-5 years horizon, enable excellent leverage for business growth and establish Ujjivan as one of best MFIs in the country.

"Since investing earlier this year, FMO has been confirmed in its conviction that Ujjivan would add improved operational efficiencies to its key strength of providing financial services to India's economically active urban poor. We are excited to be part of the Ujjivan story in pushing for full financial inclusion in India by 2020", said Keesjan de Kruijf, Senior Investment Officer, FMO.

Ujjivan serves over a million clients in 20 states including in 48 under-banked districts across the country and does not have a presence in Andhra Pradesh. Ujjivan received the Microfinance Organisation of the Year 2011 award and recently ranked 2nd in the Financial Services Industry as the Best Company to Work for in India.

Notes to Editor

Investors in fifth round equity funding: Lok Capital: Rs.10 Crores | Sequoia Capital: Rs.10 Crores | Mauritius Unitus Corporation: Rs.2.50 Crores | Elevar Equity: Rs.12.50 Crores | India Financial Inclusion Fund (Caspian Advisors): Rs.20 Crores | WCP Mauritius Holdings III (Wolfensohn Capital Partners): Rs.40 Crores | FMO (Netherlands Development Finance Company): Rs.32.60 Crores in January 2012 and Rs.2.28 Crores in September 2012 | International Finance Corporation: Rs.45 Crores in September 2012

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Ujjivan recent press release(s)


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