International Finance Corporation (IFC), the private investment arm of World Bank, is planning to put Rs 35 crore ($7 million-$7.5 million) in Rajasthan’s AU Financiers Pvt Ltd. The company, which is registered as a non-banking financial company (NBFC), provides finance to rural and semi urban areas. These include services like vehicle loans and general insurance, besides microfinance.
AU Financiers, which last year raised funding from Motilal Oswal Ventures Capital, is planning to raise an overall funding of Rs 65 crore. The Jaipur-headquartered firm plans to use the funds for expansion in Rajasthan and other states. It currently has 57 offices, most of which are in Rajasthan, with a presence in Maharashtra and Gujarat.
IFC, which is focusing on the bottom of the pyramid, has been aggressively investing in India microfinance and other companies providing finance to the unbanked. It was recently looking to invest in the $50 million PE round of Share Microfin Ltd. Other MFIs backed by the fund in India include Bhartiya Samruddhi Finance, Belstar Investment and Finance and Asomi Finance, among others. It also invests indirectly in the sector by investing in MFI focused funds like Aaviskaar Goodwell and Lok Capital.