Bangalore-based microfinance firm Ujjivan Financial Services Pvt Ltd is set to raise over Rs 100 crore in debt funding from a set of public and private sector banks. The MFI has has received approval for Rs 100.5 crore or $21 million in funding from SIDBI besides other public /private sector banks.
Ujjivan had earlier received funding of Rs 55 crore through two non-convertible debentures (NCD) issues arranged by Standard Chartered Bank. Ujjivan is backed by investors like Sequoia Capital, Lok Capital, Elevar Equity, Michael & Susan Dell Foundation and Bellwether Microfinance Fund, among others.
Ujjivan also said that it has started 100 per cent credit bureau checks for all loan approvals and has signed multiple credit bureaus like CIBIL, Highmark and recently with Equifax.
It is also distributing a new product called ‘My Loan’, which is an adaptation of the Grameen II model under which the financial liability of defaulting customers is not borne by other group members. Customers are liable for their own repayments and the group has limited responsibility to help in case of absconding customers & deliberate defaulters.
Founded by Samit Ghosh, Ujjivan is headquartered in Bangalore, with offices in Kolkata, New Delhi and Pune. As of March, 2011, it operates a network of 351 branches across 20 Indian states. Ujjivan has a portfolio of Rs 625.14 crore and in FY11, it has disbursed loans worth Rs 1,141 crore. The firm has reported a net profit of Rs 11.4 crore and a total income of Rs 108.8 crore in FY11.
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Bangalore MFI Ujjivan Eyes $25M In Equity Funding
