Ujjivan Financial Services has raised R29Cr by issuing NCDs to US based Developing World Markets. With this issue, Ujjivan has raised R84Cr in 2011-12.

Ujjivan Financial Services was incorporated in 2004 as a NBFC. The company extends loans to the urban and semi-urban poor, and targets salaried and self-employed women.

Promoted by Mr. Samit Ghosh, the entity follows a model wherein customers are organised into joint-liability groups . As on March 31, 2011, UFSPL had loans outstanding of Rs.6.25 billion catering to 0.99 million members, with 351 branches across 20 states in India.

Private Equity Investors in Ujjivan Financial Services include Unitus Equity Fund (UEF), Bellwether Microfinance Fund, Michael & Susan Dell Foundation, A.W. Holdings, Sequoia Capital, Lok Capital, Elevar Equity, India Financial Inclusion Fund and SIDBI.

In September'11, the company had announced plans to raise R100Cr through fresh equity infusion by the end of this year. It had announced plans to raise another R100Cr by placing NCDs with SIDBI and other Indian Banks.

Other MFIs including Bandhan Financial Services and Bharatiya Samruddhi have announced plans to raise funds by placing NCDs.

A number of MFIs are planning to raise funds by placing NCDs with overseas investors, after RBI, last month, came out with an amendment allowing MFIs to raise ECBs up to $10Mn during a financial year compared with the existing limit of $5Mn.

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