The International Finance Corporation (IFC) which is a part of World Bank group, is planning to acquire 20 per cent shareholding in Swadhaar FinServe (SPFL) with an equity investment of Rs 10.5 crore(US$2.25 million approximately).
Swadhar Finservie an urban microfinance institution based operating in Mumbai and it’s surroundings and has 27 outlets in Mumbai, Baroda and Pune and plans to expand its operations to Rajasthan and Central India.The word “swadhaar” in Hindi means self-support.
The equity infusion by IFC and other investors would help expand Swadhar’s outreach in urban areas to around 6,00,000 customers and to reach SPFL’s target of Rs 870.1 crore by fiscal 2016.
Swadhaar FinAccess was founded in March 2005 as a Section 25 Company registered under the Companies Act of 1956. The company was established with the objective of providing the urban poor increased access to reliable and efficient financial services in a sustainable and scaleable manner.
Swadhaar FinAccess was established as a precursor to Swadhaar FinServe Pvt. Ltd., to engage in a series of specifically designed pilot projects to deliver micro loans to the urban poor in Mumbai.
In May 2008, the promoters of Swadhaar FinAccess obtained a license from the Reserve Bank of India to launch a Non-Banking Financial Company (NBFC), Swadhaar FinServe Pvt. Ltd. and commenced operations in July 2008 while Swadhaar FinAccess simultaneously ceased providing loans. It facilitates savings and provides financial Education and Livelihoods Training.