Ujjivan, a microfinance lender primarily serving women in urban areas recently raised the equivalent of USD 48 million in a set of transactions that reportedly comprise the largest microfinance deal in India’s history. The investment has been led by a unit of India’s Bajaj Group, the UK’s Commonwealth Development Corporation, India’s CX Partners and Hong Kong-based Newquest Capital Partners. An additional USD 48 will be used to purchase shares from unspecified previous investors, which include India’s Elevar, India’s Lok Capital, US-based Sequoia and US-based Wolfensohn Fund Management among others. Ujjivan, which operates on a joint-liability group lending model, holds assets equivalent to USD 487 million. March 9. 2015
By Jeff Pierce, Research Associate
About Ujjivan Financial Service
Ujjivan Financial Services is a microfinance institution (MFI) based in Bangalore, India, that offers loans and insurance products. It was founded in 2004 and focuses on low-income women in urban and semi-urban areas. Its products include business loans, educational loans, emergency loans and life insurance. As of December 2013, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 343.4 million, a gross loan portfolio of USD 269.3 million, return on assets (ROA) of 3.20 percent, return on equity (ROE) of 15.86 percent and 1.3 million active borrowers.
Sources and Additional Resources:
[1] The Times of India: “Ujjivan gets Rs 600cr in biggest microfin deal” by Aparna Ramalingam & Boby Kurian, January 12, 2015, http://timesofindia.indiatimes.com/business/india-business/Ujjivan-gets-Rs-600cr-in-biggest-microfin-deal/articleshow/45846575.cms
[2] Policy Bazaar: “Ujjivan Financial gets Rs 600 crore in biggest microfinance deal” by ‘admin,’ January 12, 2015, http://policybazar.xyz/latest-news/ujjivan-financial-gets-rs-600-crore-in-biggest-microfinance-deal/
MicroCapital Universe Profile: Ujjivan Financial Services
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: FMO Committing $30m to South Asia Growth Fund III to Support Equity Placements in Businesses Reducing Environmental Impacts, Mainly in India
- MICROCAPITAL BRIEF: Impact Asset Management’s Dual Return Vision Microfinance Funds Issue Loans to MFIs in Ecuador, Georgia, Kyrgyzstan, Paraguay
- MICROCAPITAL BRIEF: Opportunity EduFinance Partners with 7 FSPs to Invest in Education in Africa, India
- MICROCAPITAL BRIEF: FINCA Ventures Places Equity in Agtech CassVita, Seeking to Boost Incomes from Farming Cassava in Cameroon
- MICROCAPITAL BRIEF: Abler Nordic Leads $10m Equity, Debt Investment Round for Ergos, Agtech Offering Crop Storage in India
