JM Fin India Fund to invest Rs 40cr in MFI

JM Financial India Fund, a $225 million private equity fund sponsored by JM Financial and Old Lane Partners LP, will invest Rs 40 crore in Spandana, a leading microfinance institution (MFI).

Spandana caters primarily to the lower income borrowers located in rural and urban areas. The company operates through its 300-plus branch network in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Tamil Nadu with a client base in excess of 1 million.

The company will use the funds to expand its branch network and pursue growth opportunities - both organically and through acquisitions.

Dilip Kothari, managing director, JM Financial India Fund said: "We believe the company is well placed to benefit from its unique positioning in the niche microfinance sector and the multitude of untapped opportunities that can be customised to meet the needs of the semi-urban and rural masses."