Kolkata-based lender Jagaran Microfin Pvt. Ltd has raised Rs 55 crore ($7.8 million) in debt funding from social impact investor BlueOrchard Finance, investment banking firm Unitus Capital said in a statement.
Unitus Capital served as the financial adviser to Jagaran for this transaction.
Jagaran has raised funding by issuing non-convertible debentures to two funds managed by BlueOrchard -- Blue Orchard Microfinance and Japan Asean Women Empowerment Fund.
In India, BlueOrchard has backed a number of microlenders and non-banking financial companies. These include microlenders Satya MicroCapital, Svasti Microfinance and SV Creditline.
Nikunj Oli, investment officer at BlueOrchard, said, “We remain committed to the Indian financial-inclusion ecosystem and the microfinance sector. We believe that MFIs (microfinance institutions), with their constant quest for innovation and client focus, are very well-positioned for delivering cost-effective micro credit.”
BlueOrchard was founded in 2001, by an initiative of the United Nations, as the commercial manager of microfinance debt investments. It offers debt and equity financing to institutions in emerging markets. BlueOrchard has presence in four continents, and has invested more than $5 billion in 350 institutions across 80 countries till date.
Jagaran, which started microfinance operations in December 2010, currently operates in West Bengal, Bihar, Jharkhand, Odisha and Assam through 108 branches.
Jagaran’s gross loan portfolio stood at Rs 289 crore as on September-end, according to the latest report by Microfinance Institutions Network.