JM Financial India Fund to invest Rs 40 Cr in MFI

Mumbai, July 9: JM Financial India Fund, a corporate private equity fund, will invest Rs 40 crore in Spandana, a leading Micro Finance (MFI) organisation.

The investment by JM Financial India Fund will be used to expand Spandana's branch network and pursue growth opportunities both organically and through acquisitions, a release issued by JM Financials said here today.

Spandana, a leading MFI, caters primarily to the lower income borrowers located in rural and urban areas. The Company operates in India through its 300 plus branch network in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Tamil Nadu, with a client base in excess of one million.

Commenting on the company's investments, Dilip Kothari, founding Managing Director of JM Financial India Fund, said, ''We look forward to working together with Spandana to create the premier microfinance organisation in the country''.

Mrs. Padmaja Reddy, Managing Director of Spandana, said, ''We are extremely pleased to partner with the JM Financial India fund, given its domain expertise in the Financial Services sector. We look forward to working with JM Financial's team and leveraging their expertise to expand our customer base, grow our distribution network, and enhance our service offerings.'' Since its inception in 1998, Spandana has set industry benchmarks on several parameters and disapproved several myths about MFIs, the release added.

UNI