Janalakshmi Financial Services, a Bangalore-based NBFC Microfinance Institution (MFI) promoted by Ramesh Ramanathan, has announced the closure of its Series B funding of $10 million. This round was led by Treeline Asia Master Fund (Singapore), a hedge fund based out of Hong Kong and Singapore.
Bellwether Microfinance Fund, an existing investor in the company, also participated in this round. Narayan Ramachandran, who recently relinquished his position as country head of Morgan Stanley India, also invested in Janalakshmi in this round in his personal capacity and has recently joined Janalakshmi’s board. Grameen Capital India acted as the sole advisor to Janalakshmi for this deal.
Janalakshmi Financial Services Pvt Ltd is among the earliest and one of only a handful of microfinance institutions focused exclusively on the high-potential urban microfinance space in India. Importantly, it is the only MFI in India that has a unique structure as a social business, with the entire promoter stake being held in a Not-For-Profit Section 25 Company, Janalakshmi Social Services. It is founded by Ramesh Ramanathan, who returned to India over a decade ago after a successful banking career.
Speaking on this transaction, Ramesh said, “We are very happy to have closed our second round of funding in a very quick time – it’s a validation of our approach to addressing issues of financial inclusion in a unique social business model.
Source: Financial Express