World Bank’s multilateral lending arm IFC will invest Rs 35 crore in Jaipur-based asset finance company AU Financiers to serve the financial needs of low income, self-employed and small transport entrepreneurs in semi-urban and rural areas. AU Financiers expects to reach more than 1,80,000 small borrowers in five years.
The India Business Excellence Fund (IBEF), a private equity fund managed by Motilal Oswal Pvt Equity Advisors Ltd (MOPE), will also invest Rs 20 crore in the project. MOPE has invested in the company since 2008.
AU Financiers plans to build on its presence in remote areas and grow from a small base to meet the needs of those who find it challenging to access credit for business activities.
?AU operates as an extended arm of banks and aims to reach borrowers in remote areas untouched by banks. High costs make it difficult to reach this segment. With IFC?s and MOPE’s support, we expect to realise significant potential in our outreach,? said Sanjay Agarwal, managing director of AU Financiers.