JM Financial Fund, Lok Capital Invest $12.5 Million In Spandana
Tue, 07/10/2007 - 16:43 — Sahad P VJM Financial India Fund and Lok Capital have invested Rs 49 crore ($12.25 million) in Spandana Sphoorty Innovative Financial Services, a leading microfinance institution in South Asia. JM Financial India Fund, sponsored by JM Financial and Old Lane Partners LP, has invested Rs 40 crore ($10 million), while Lok Capital, a Mauritius-registered fund, has invested $2.25 million in Spandana.
The investment will help Spandana continue providing diversified financial services to lower income clients as well as expand its product portfolio and geographical reach across India, a release said. Spandana has over a million clients and more than $100 million of outstanding loan portfolio. It operates in five Indian states and is the sole microfinance partner for Western Union remittances in the states of Andhra Pradesh, Karnataka and Tamil Nadu.
Spandana is founded by Padmaja Reddy, who is the MD of the MFI.
Vishal Mehta, General Manager of Delhi-based Lok Advisory Services, said: "What is most attractive for us in this transaction is the relationship and trust we have been able to build with the promoter. We believe in Spandana’s products and values and are confident that this investment represents one of the best opportunities for supporting the growth of the commercial microfinance sector in India.”
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See our Microfinance category for more stories.
Comments
Now there is a true business attitude, a company oriented the same way towards all its clients,, disregarding the size of their working capital. It very necessary to know that in order to succeed in business you must make the best out of everything you are given.
December 26, 2007
What's going on with this fund? The last draw down was supposedly scheduled for July 2007. We're still waiting with bated breath in December. Is this a good deal or is it just one of those also rans?