Gujarat-based microfinance firm Ananya Finance For Inclusive Growth Pvt Ltd, which essentially lends to smaller MFIs, is looking to raise $32 million (Rs 150 crore) in equity infusion as its looks to scale up its operations. Ananya, which was recently incorporated as an non banking finance company (NBFC), may also get a $10 million infusion from International Financial Corporation (IFC). The private investment arm of the World Bank may take up to a 20% stake in Ananya, valuing it in excess of $50 million or Rs 250 crore.
Ananya, a wholesale MFI, would use these funds to provide financial and non financial services to smaller MFIs in order to help them expand. The infusion also enable it to lend larger amounts and help with capital adequacy.
Ananya, earlier known as Friends of Women’s World Banking (FWWB), claims to have made first loans to SKS Microfinance, SHARE Microfin and Spandana Sphoorty Financial Ltd. All these are the largest MFIs in India and SKS recently completed its IPO, which oversubscribed more than 11 times.
The main promoter unit of the MFI would be Indian Foundation for Inclusive Growth (IFIG) Trust. The Ahmedabad-based firm is starting with a loan portfolio of Rs 400 crore, which was transferred by the trust. Ananya has clients across 17 states with excess of 122 partners, who have an outreach of more than 14 million customers.
Private equity and venture capital funds have invested more than $367.5 million in 51 disclosed transactions since 2008, according to VCCEdge.
IFC and other sector-focused funds have been increasingly investing in MFI space in North and Western parts of India, which remains under-penetrated as compared to South India. IFC had recently invested in Delhi-based Satin Creditcare Network and Mumbai’s Swadhaar Finserve.
The investment in Ananya could be one of the largest fundraises in the region. IFC, along with Motilal Oswal PE, invested Rs 55 crore in AU Financiers, which offers loans to low income segment to buy commercial, mult-utility vehicles and tractors.