IFMR Capital raises $29 mn from LeapFrog Investments

Chennai headquartered IFMR Capital, an NBFC that helps microfinance institutions and small businesses raise debt finance, has raised $29 million from LeapFrog Investments in a growth funding round. The investment has been made from LeapFrog’s second fund.

“There is a strong shared sense of purpose between LeapFrog Investments and IFMR Capital about our approach towards sustainably promoting financial inclusion. Their investment and their international team’s expertise will help enhance our capacity and ability to provide valuable product and service offerings to our clients.  It will also deepen our access to a wider class of international investors,” IFMR Capital CEO Kshama Fernandes said in a statement.

IFMR Capital, promoted and launched by IFMR Trust in 2008, operates in over 345 districts across 24 states in India. These institutions deliver credit, insurance and other financial services to over 6.6 million active borrowers and 7.6 million insured customers.

The market for financing small and medium enterprises is expected to grow from $1.5 billion to $ 6.35 billion by 2020, says the company. The total affordable housing shortage in India today represents a financing requirement of $185 billion. Over the past five years, IFMR Capital has developed a specialized platform for enabling access to finance for these sectors. It claims to have enabled over $1 billion in financing to date across 150-plus capital market transactions.

” The demand for financial springboards and safety nets in India is growing fast, on a very large scale. IFMR Capital recognized this need early. We look forward to working with them now to create a financial highway,” LeapFrog co-founder Jim Roth said.

Rothschild acted as financial advisor to IFMR Capital.