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Jaipur-based auto loan company Au Financiers today said it has raised $25 million from the World Bank group's arm International Finance Corporation (IFC) to strengthen its existing product lines.
The investment was done through private placement of non- convertible debentures, Au Financiers said in a statement.
"IFC's financing will enable us in serving financing needs of small and medium enterprises, and help expand operations in semi-urban and rural markets. IFC's support will provide Au an additional source of debt funding and help reduce its reliance on bank borrowings," Au Financiers Managing Director Sanjay Agarwal said.
In 2013, foreign institutional investors like FMO, a Dutch development bank, GuarantCo, which is owned by FMO, Standard Bank Group, and CDC, a UK- based development financial institution, had provided long term unsecured debt to the company.
The proceeds from the infusion will be used for strengthening existing product lines through its network of 225 branches in 10 states in Rajasthan, Maharashtra, Gujarat, Goa, Punjab, Madhya Pradesh, Chhattisgarh, Delhi-National Capital Region, Haryana, and Himachal Pradesh, it said.
