Ahmedabad-based Ananya Finance for Inclusive Growth Pvt Ltd, an institutional lender to microfinance institutions (MFIs), has raised Rs 18 crore (just under $3 million) in Series A funding from WWB ISIS Fund (ISIS) and IDBI Bank. This includes Rs 9 crore of Compulsorily Convertible Preference Shares (CCPS) from ISIS and Rs 9 crore of Optionally Convertible Preference Shares (OCPS) from IDBI Bank.
VCCircle first reported about Ananya’s impending fund raising plans in June.
Ananya is an NBFC promoted by IFIG, a special purpose vehicle floated by Friends of Women’s World Banking (FWWB), an apex body providing support to MFIs. Ananya has inherited the FWWB’s wholesale lending programme that goes way back to the 90s.
Ananya lends to microfinance institutions which provide loans to low income communities and serves as a link for women with banking institutions and agencies providing managerial and technical support.
It also extends its support to organisations working on livelihood creation activities. Ananya has to date provided assistance of Rs 506 crore to over 130 organisations across 17 Indian states.
The funding would help Ananya to increase its capital adequacy and garner more funding from banks and financial institutions besides aiding smaller MFIs and social businesses to get more funding from itself.
ISIS is a microfinance investment vehicle established by Women’s World Banking to make equity investments in MFIs which are its network members. The network consists of 39 microfinance providers in 27 countries. In the past, it has invested in Bangalore-based MFI, Ujjivan Financial Services.
Another investor, IDBI’s relationship with Ananya goes back to its parent organisation, FWWB, for which it was the first lender way back in the 90s, post which FWWB grew to become an apex body for supporting growing MFIs.
Vijayalakshmi Das, managing director and promoter director, Ananya, said, “With the increased equity base, we will be able to raise more debt and eventually have many fold impact on the bottom-of-the pyramid sector.”
Unitus Capital was the exclusive advisor to Ananya for this transaction.
Abhijit Ray, co-founder and managing director of Unitus Capital, said, “The impact created by Ananya over the years has been phenomenal and is a testament to the vision of the founder Ela Ben. This funding to Ananya will go a long way in increasing the flow of funds to the industry and making much larger impact in the near future.”
Karel Nierop, investment officer, Triodos Investment Management (co-investment manager of ISIS), said, “This investment by ISIS will enable Ananya to continue its sustainable growth and expand product and service offerings to its clients.”
(Edited by Joby Puthuparampil Johnson)