Janalakshmi Financial Services (JFS), which recently received the final licence to set up a small finance bank (SFB), on Monday said it has raised Rs 1,030 crore from a group of investors, led by private equity player TPG. “TPG is leading the current round and investing a significant amount that includes a structured portion at the holding company level,” Janalakshmi said in a statement, adding that the current round of funding was a crucial step in enabling JFS to complete its transition into an SFB. Other current investors participating were Morgan Stanley Asia managed PE fund (NHPEA), Treeline, QRG Enterprises and Vallabh Bhansali.
Meanwhile, Bajaj Allianz Life Insurance Company and Bajaj Allianz General Insurance Company were new investors in JFS. The lender said although there were disruptions for JFS and the microfinance industry earlier in the year, the business has stabilised. “With fresh capital and the support of both current and new investors, JFS expects to launch the SFB and resume its growth,” it added.