Shriram CCL dilutes 10% stake to LeapFrog

Shriram CCL, a subsidiary of Shriram Capital, has diluted 10 per cent of its equity to private equity (PE) firm LeapFrog Investments. The PE firm has infused Rs 67 crore into Shriram CCL , a financial services distribution company.

The money will be distributed among three subsidiaries of Shriram CCL – Shriram Insight, Shriram Fortune and Shriram Wealth Advisory – which provide services on savings, insurance and investment products to the low-income and emerging consumer market in India.

G S Sundararajan, managing director, Shriram Capital said that LeapFrog was a fast-moving investor dedicated to a rapidly growin business line. “This is more than an investment – it is a strategic partnership that expands our ability to innovate and serve ever more customers”.

“We will access LeapFrog’s world-leading expertise in delivering insurance products relevant to the base of the economic pyramid – a customer segment that has always been at the top of our agenda. Our philosophy 'serve the underserved' is common and the reason behind this marriage,” he said.

With the support of LeapFrog’s expertise and capital the business is expected to reach, protect and enable one crore beneficiaries within a year, he said.

Jim Roth, co-founder of LeapFrog, said, “Investment into such companies not only has social perspective, it also gives good returns. In next 5-7 years Shriram CCL will look at IPO.”

Currently, the financial services businesses now mange assets exceeding Rs 400 crore and have 650 lakh customers across the country, said Sundararajan.

LeapFrog is the world’s largest investment fund focused on inclusive insurance and other essential financials services. The Rs 600 crore fund invests in insurance and financial services companies.

“India is an important market for the LeapFrog fund, with up to Rs 180 crore to invest in local companies that underwrite or distribute insurance,” said Roth.