The International Finance Corporation (IFC), part of World Bank group, is planning to acquire 20 per cent shareholding in Swadhaar FinServe (SPFL), an urban-focused microfinance institution based operating in Mumbai, Baroda and Pune.
IFC’s proposed investment in SPFL consists of an equity investment of upto $2.25 million (around Rs 10 crore) for a shareholding of up to 20 per cent, according to the corporation’s project note. SFPL’s key investors (apart from the Sponsors) include Padmini Benefit Trust, ACCION Gateway Fund, Michael & Susan Dell Foundation and Unitus Equity Fund.
The key investors include Veena Mankar, an ex banker and Haseena Vahanvaty, development professional. Lalita D Gupte, ex Joint Managing Director of ICICI is the Chairperson of the Board.
As of March 2010, SFPL has 27 outlets in Mumbai, Baroda and Pune and proposes to expand its operations in Rajasthan and Madhya Pradesh.
The equity infusion by IFC and other investors would help expand outreach of access to finance in urban areas to around 600,000 customers and to each SPFL’s target of Rs 870.1 crore by March 2016.