International Finance Corporation (IFC) is in the process of picking up stake in urban-focused microfinance institution Swadhaar FinServe (SFPL). The multilateral lending agency would pump in approximately $2.25 million (Rs 10.5 crore) for a 20% shareholding in the venture.
According to information available, the investment into the Mumbai-based microfinance institution would help the company to expand and provide increased access to financial services within the formal sector. At present, the company is operating through 27 outlets across Mumbai, Baroda and Pune and is planning to expand into the low income states of Rajasthan and Madhya Pradesh. The equity infusion by IFC and other investors would help expand access to finance in urban areas to around 6,00,000 customers by 2016 fiscal.