Janalakshmi Financial Services, a Bangalore-based microfinance institution (MFI) that offers loans and insurance, reportedly is set to reach INR 6 billion (USD 98.1 million) in private equity fund raising during 2014. According to unidentified investment bankers with knowledge of the microfinance industry in India, the first phase of equity funding, to be completed in August 2014, could reach INR 3.5 billion (USD 57.2 million), which would improve upon the INR 3.25 billion (USD 53.3 million) raised by Janalakshmi in Series-D funding in August 2013, which MicroCapital reported on at the time [1][2].
According to unspecified member of the management team of Janalakshmi, the MFI could need as much as INR 20 billion (USD 327 million) in various types of funding to “propel their operations” through an unspecified time period. Janalakshmi reportedly has set a funding target of INR 100 billion (USD 1.6 billion) over the next three years.
As of 2014, Janalakshmi reported total assets of USD 420 million, a gross loan portfolio of USD 342 million and 1.4 million active borrowers. As of 2013, Janalakshmi reported return on assets of 1.97 percent and return on equity of 8.64 percent. The MFI does not accept deposits.
By Benjamin Krupp, Research Associate
About Janalakshmi Financial Services
Janalakshmi Financial Services (JFS) is a microfinance institution (MFI) located in India. It is focused primarily on offering loans and microinsurance in urban areas. As of 2014, JFS reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 420 million, a gross loan portfolio of USD 342 million and 1.4 million active borrowers. As of 2013, JFS reported return on assets of 1.97 percent and return on equity of 8.64 percent. The MFI does not accept deposits.
Sources and Additional Resources
[1] Business Standard: Janalakshmi Financial Set for a Record PE Funding Raise
[2] The Economic Times: Private Equity Funds to Buy Stake in Janalakshmi Financial Services for Rs 350 Crore
MicroCapital, August 21, 2013: Private Equity Funds to buy Stake in Janalakshmi Financial Services of India for $50.9m
MicroCapital, August 8, 2013: Standard Chartered Bank (SCB) Loans $13m to Indian MFIs Janalakshmi Financial Services Private Limited, Ujjivan Financial Services Private Limited
MicroCapital, April 1, 2013: Janalakshmi Financial Services (JFS) Partners with Manipal Global to Train JFS Employees
MicroCapital Universe Profile: Janalakshmi Financial Services (JFS)
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