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IFMR Capital raises $17M in private equity funding round from Standard Chartered

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IFMR Capital provides and raises capital for MFIs, SME Lending NBFCs

Bengaluru – Dec 20, 2016. RedNewswire/-

Chennai-based IFMR Capital is a financial services firm that helps financial institutions serving under-banked people raise funds. It has raised $17M in Private equity funding round from  Standard Chartered. The standard Chartered Private Equity (SCPE) will invest upto $50M in the company.

The company was founed in 2008 by Kshama Fernandes. It Connects high quality microfinance institutions (MFIs), affordable housing finance companies, institutions lending to small & medium enterprises (SMEs) and commercial vehicle finance companies, with investors in debt capital markets, such as banks, mutual funds, NBFCs and individuals.

The new funds raised will be used to strengthen its business in unbanked sectors, including affordable housing finance, small business, vehicle finance, agriculture finance and microfinance.

It raises debt financing through a variety of instruments, including securitisation, collateralised debt obligations (CDOs) and loan guarantees which are then traded on debt capital markets. Their core competency in underwriting and financial structuring allows them to offer low-risk investment options to their investors.

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Udai Dhawan, managing director and country head, India at SCPE, said..

“They (IFMR Capital) have a differentiated business model, which offers a very strong value proposition to both the originators (NBFCs, MFI etc.) as well as the investors which invest in these companies through instruments arranged by IFMR Capital. It is not only providing credit solutions to lenders, but they are also putting their own capital on the line, which is a unique business model.”

The company has been promoted by IFMR Trust which focuses on financial inclusion. So far, they have executed 150 transactions and are planning to tap debt capital from pension funds and insurance companies. 

Kshama Fernandes, managing director and chief executive at IFMR Capital, said..

“We work with over a hundred clients, but there are several more institutions out there who face challenges in accessing capital markets. We want to reach out to many more such originators. And we want to intervene in the capital markets in a much more ambitious manner.”

IFMR has offices in Chennai, Mumbai, Gurgaon and Bangalore. It has previously raised $29M  IN PE round from LeapFrog Investments in march 2014. Again raised $25M in PE funding round from Eight Roads Ventures.

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