The microfinance institution (MFI) has shifted its base to Varanasi in Uttar Pradesh since the acquisition in August. The company will be rechristened as Utkarsh Microfinance soon.
The firm is in the process of growing into an NBFC and funds have been lined up to facilitate it. The IFC investment, for which due diligence is under way, will help boost the transformation of the company in a big way, said an official spokesperson of Shre Pathrakali Finance. The MFI, which has opened four branches in a span of three months, will initially focus on its operations in Uttar Pradesh, and chalk out plans to expand in other states later.
According to an analyst, IFCs investment in a state like Uttar Pradesh, and in a microfinance company at an early stage, will likely to encourage other investors and entrepreneurs to expand operations in UP and nearby states, thereby increasing flow of credit to such areas.