Bangalore-based MFI, Janalakshmi Financial Services Pvt Ltd has raised Rs.65 Cr in its third round of funding, led by Citi Venture Capital International (CVCI). Other existing investors have also participated in this round.

CVCI has taken a significant minority stake in this transaction. Janalakshmi is also planning to raise additional funding as a part of this round.

Unitus Capital was lead financial advisor and arranger to Janalakshmi and its shareholders for the transaction. Morgan Stanley also acted as an advisor.

Transaction Reference: Press Release

Founded by former Citigroup banker Ramesh Ramanathan, Janalakshmi Financial Services is a for-profit non-banking financial company and an urban microfinance institution, with the promoter stake held in the not-for-profit entity Janalakshmi Social Services.

Janalakshmi focuses on extending micro loans in the urban areas.

Last year in March, Janalakshmi had raised $10 Mn in its second round of funding from Tree Line Asia Master Fund (Singapore) Pte. Ltd, Bellwether Microfinance Fund and Narayan Ramachandran – former head of Morgan Stanley India Investment Fund Inc.

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

This is the first large equity raise announced since the Indian microfinance crisis began lat last year.

In Jan this year, IFC had proposed to invest $35 Mn in Kolkata-based MFI, Bandhan Financial Services Limited to fund its credit growth and expansion plans.

Last year Equitas Microfinance raised Rs.45 Cr from Canaan Partners, while the largest MFI in India, SKS Microfinance raised Rs.1,650 Cr through IPO in July.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
18/04/12	Janalakshmi Financial - Fund Raise	Private Equity	Looking For	9.65
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
07/05/12	Private Equity	International Finance Corporation	Ujjivan Financial Services Private Limited	9.35	Planned
07/05/12	Private Equity	International Finance Corporation	Equitas Holdings Private Limited (Formerly Equitas Micro Finance India Private Limited)	18.70	Planned
18/04/12	Private Equity	Looking For	Janalakshmi Financial Services Private Limited	9.65	Planned
16/04/12	M&A	Basix Group	Unknown Asset	-	Planned

 

  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Citi Venture Capital International		IT/ITES/Technology Telecom Pharma Retail	www.citicapitaladvisors.com	PR SrinivasanRajeev KalraAjay RelanSunil NairAjit BhushanBob KhannaRahul Kumar YadavMarc DesaedeleerDipak Rastogi

Company
Name	Promoters	Office	Competitor	Website
Janalakshmi Financial Services Private Limited	Ramesh Ramanathan	Rajashree Saroja Plaza, No 34/1 Andree Road, Shanti Nagar	SKS Microfinance Limited Equitas Holdings Private Limited (Formerly 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

Unitus Capital