Microfinance Private Equity

Ujjivan gets Rs 127 Crore equity funding

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.

ujjivan funding

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.

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.

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.

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