New Delhi: Microfinance firm Ujjivan Financial Services on Tuesday said it has raised Rs 47.28 crore from IFC, a member of the World Bank Group and foreign institutional investor FMO.
Ujjivan Financial has raised Rs 45 crores (USD 9 million) equity capital from IFC and an additional Rs 2.28 crore (USD 0.45 million) from FMO (Netherlands Development Finance Company), the company said in a statement.
"This is a reiteration of IFC's and FMO's faith in India's micro-finance sector, demonstrating that it continues to be fundamentally strong," Ujjivan Managing Director Samit Ghosh said.
In January, Ujjivan had raised Rs 127.9 crore (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 crore (USD 35.03 million) is one of the highest raised by an MFI in India this year, the statement added.
With its capitalisation increasing to Rs 275 crore, 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.
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 second in the Financial Services Industry as the Best Company to Work for in India.