Ujjivan mops up Rs 600cr
Mumbai, March 20: Microfinance firm Ujjivan Financial Services today said it had raised Rs 600 crore from various investors, including CX Partners Fund I Ltd, CDC Group Plc, NewQuest Asia Investments II Ltd and Bajaj Holdings.
Existing investors, including IFC and Elevar Equity Mauritius, have also put in money as part of the transaction.
The microlender was founded in 2005 with the first branch in Bangalore. At present, Ujjivan operates in 21 states and three Union territories through 423 branches, of which around 122 are in the east. According to the company website, it has disbursed loans of over Rs 10,301 crore so far.
Ujjivan plans to use the proceeds to expand its loan book by offering products under both individual and joint liability group lending models.
"This equity transaction is the largest in the sector and reaffirms Ujjivan's inherent strength in terms of its excellent growth and profitability with strong governance. It is also a strong indicator of the increasing interest of foreign and domestic investors & DFI's (development finance institution) in the MFI sector," managing director and CEO Samit Ghosh said.
The transaction also witnessed "partial secondary exits'' of a few of its existing investors but their identities were not disclosed.