Janalakshmi Financial Services Pvt. Ltd. has raised $10 Mn in its second round of funding. Tree Line Asia Master Fund (Singapore) Pte. Ltd. and Bellwether Microfinance Fund were the investors in the second round. Narayan Ramachandran – former head of Morgan Stanley India Investment Fund Inc. head also invested from his personal capacity.

This deal was announced a couple days after Narayan Ramachandran was appointed as a Director on the board of Janalakshmi. Ramachandran – a veteran with over 20 years of experience – was the head and lead portfolio manager of Morgan Stanley's Global Emerging Markets and Global Asset Allocation teams, managing over $25 Bn in assets.

Transaction Reference: Livemint

Janalakshmi had raised first round of funding from Lok Capital, Bellwether Microfinance fund and the Micheal and Susan Dell Foundation.

Janalakshmi Financial Services – founded by Citigroup Banker Ramesh Ramanathan – intends to utilize the fund for expansion. It is currently active in six cities with around 100,000 clients. It has an outstanding loan size of Rs 85 Cr.

Janalakshmi offers a bouquet of financial products including credit, savings and insurance. It offers large group loans, small group loans, education loans and other products. It also provides insurance and pension solutions in partnership with LIC and UTI.

Indian MFI sector saw more than 21 deals in 2009. Indian MFIs raised more than $187 Mn in 2009. Asmitha Microfin Ltd., Village Financial Services Pvt. Ltd. raised funds from SIDBI in Jan’10.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
22/06/11	Janalakshmi Financial Services - Citi Venture Capital	Private Equity	Citi Venture Capital International	15.00
08/03/10	Janalakshmi Financial Services - Treeline, Bellwether	Venture Capital	Bellwether Microfinance Fund	10.00

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
06/02/12	Venture Capital	Unitus Seed Fund	Milaap Social Ventures	-	Announced
01/02/12	Private Equity	Sequoia Capital India	Ujjivan Financial Services Private Limited	25.75	Completed
23/01/12	M&A	Singhivi Investment and Finance Private Limited	Microfinance Business	-	Announced
12/10/11	Private Equity	Helion Venture Partners	Spandana Sphoorty Financial Limited	1.37	Completed

 

  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Bellwether Microfinance Fund	20	Micro Finance	http://www.caspian.in//bellwether.aspx	B V NarsimhamVishal BharatR Venkatram Reddy

Company
Name	Promoters	Office	Competitor	Website
Janalakshmi Financial Services Private Limited	Ramesh Ramanathan	1st,Floor UNI Building, Thimmaiah Road	SKS Microfinance Limited Equitas Micro Finance India Private Limited Asirvad Microfinance Private Limited Suryoday Micro Finance Private Limited Annapurna Micro Finance Private Limited S.M.I.L.E Microfinance Limited	www.janalakshmi.com

  Advisor

Grameen Capital India