Janalakshmi Financial Services which has been founded by former Citibank banker Ramesh Ramanathan plans to raise more than Rs 200 crore in private equity funding in the near term, a source familiar with the development revealed.
Unlike most other microfinance companies that are focused on rural areas, Janalakshmi Financial Services is an urban microfinance institution and has majority of it’s operations in urban and semi-urban areas. Once the deal is completed, it will be one of the biggest private equity deals by an Indian microfinance company in recent times.
Microfinance analysts and investors will be keenly watching the price and valuations of the deal as it will also be the first major deal after the Andhra Pradesh Microfinance Crisis which has sent valuations and share prices of listed microfinance companies tumbling down.
Previously Janalakshmi had raised US$ 10 million from Treeline Asia Master Fund (Singapore) which is also an investor in SKS Microfinance. Other investors in Janalakshmi Financial Services include Bellwether Microfinance Fund, Lok Capital and Michael and Susan Dell Foundation.