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Construction : Deals | August 2013 | Source : Construction Update

Janalakshmi Financial to raise Rs Rs 300 cr PE fund

Bangalore-based Janalakshmi Financial Services, a micro-finance institutions is planning to raise Rs 300 crore through PE fund. The fund is said to be raised from the exisiting investors along with new funds joining in. The company has so far raised a total of around Rs 250 crore and the fresh transaction is expected to be closed within the next month. Janalakshmi Financial Services which is aspiring for a banking licence in India is a NBFC focused company having a book of around Rs 1000 crore.

Its exisiting investors include Citi Venture Capital International, Bellwether Microfinance Fund, Lok Capital, Michael & Susan Dell Foundation, Tree Line Investment Management, India Financial Inclusion Fund and Gawa Microfinance Fund. During July 2012, Janalakshmi had announced that it has raised Series C funding of Rs 145 crore in two tranches of Rs 65 crore and Rs 80 crore during June 2011 and July 2012 respectively.

India Financial Inclusion Fund and GAWA Micro-finance lead the investment in the second tranche. Citi Venture PE which led the investment in the first tranche had increased its stake in the company by infusing additional capital. Janalakshmi Financial Services commenced microfinance operations in April 2008 by taking over the portfolio of Janalakshmi Social Services.

Janalakshmi has been designed in a 2-tier structure: for-profit operating companies for investors; and a (Section 25) not-for-profit holding company - JSS in which promoter stakes are held. JSS had earlier acquired the urban microfinance programme of Sanghamithra Rural Financial Services and started its own microfinance programme in July 2006.

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