Private equity fund JM Financial India, co-promoted by JM Financial group and Citigroup’s Old Lane, has invested about Rs 40 crore in Hyderabad-based microfinance company Spandana, which will enable the non-banking finance company to expand its capital base and geographical reach.
The $225-million corpus JM Financial India is also close to deciding on increasing its investment in Genesis Colors, a lifestyle company, where the fund had initially invested about $5 million with an option to invest another $10 million.
“Apart from an equity stake in the microfinance company, the investment also gives us affirmative rights and the chance to bring in management professionals into the organisation,” said JM Financial MD Dilip Kothari. Although he declined to specify details, it is reliably learnt that the fund will get a 20% to 30% equity stake in Spandana.
Spandana is a southern India-oriented microfinance company that is currently planning to expand its reach to other countries. “We look forward to working with JM Financial’s team to expand our customer base and grow our distribution network,” said promoter and MD Padmaja Reddy.
Read more in The Economic Tims article.
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