Janalakshmi, a microfinance institution headquartered in Bangalore and promoted by Ramesh Ramanathan, announced that it had closed its Series D primary equity raise of Rs 325 crore.
In addition, secondary transactions aggregating Rs 25 crore provided a complete exit for Lok Capital and the Michael & Susan Dell Foundation, both of whom were early stage Series A investors. This is the largest transaction in Indian microfinance since the 2010 Andhra crisis. Morgan Stanley Private Equity Asia (MSPEA) led the transaction and Tata Capital Growth Fund and QRG Enterprises, the promoter holding company of Havells India
, also participated in the round. Existing investors - Citi Venture Capital (CVCI Private Equity), India Financial Inclusion Fund and Vallabh Bhanshali - also participated.
Edelweiss Financial Services Limited and Unitus Capital jointly advised the Company on this transaction.
Janalakshmi is among the very few MFIs focused on urban Indian microfinance and on comprehensive financial inclusion, which extends substantially beyond group credit. Moreover, it is the only Indian MFI with the entire promoter stake being held in a not-for-profit Section 25 company, Jana Urban Foundation, which focuses on addressing larger issues related to urban inclusion.
The structure ensures that no financial benefit arising from the performance of Janalakshmi accrues personally to the promoter. Janalakshmi has one of the strongest management teams in microfinance with over 300 years of cumulative banking experience, including R Srinivasan (Executive Vice Chairman), a former civil servant with 45+ years of experience with ANZ Grindlays Bank, Fitch Ratings, the Indian Revenue Service and JP Morgan, and V.S. Radhakrishnan (MD & CEO), a veteran banker with 25+ years experience with HSBC and ING Vysya Bank
and who is also an IIM-A alumnus.
Speaking on this transaction, V. S. Radhakrishnan, MD & CEO, Janalakshmi, remarked "We are delighted to have raised these funds from both new large investors and existing investors. This is a validation of our business model that we have pursued over the last several years.
The core pillars of our business model is our customer and her needs; the persistent use of cutting edge technology and most importantly, strong and motivated human talent from the field team all the way to senior management. This investment will help us continue in our path of growth and innovation, as we continue to focus on building stronger customer relationships with a full suite of financial products and new technology - like Aadhar based front end terminals" Janalakshmi Financial Services has assets of more than Rs 1200 crore.