NBFC sector moves to get over IL&FS crisis, PE/VC investments up 42%

One of the active investors in the sector is International Finance Corporation, the World Bank's investment arm

The collapse of Infrastructure Leasing and Financial Services (IL&FS) last year pulled down India’s shadow banking companies but investors have not abandoned in the sector, data shows.

Private equity (PE) and venture capital (VC) firms invested around $2.01 billion in Non-Banking Financial Companies (NBFC)—informally called shadow banks—in 2019 compared to $1.42 billion a year ago, up by 42 per cent.

According to Venture Intelligence data, investors since January have pumped in $2.01 billion across 33 deals. This compares to $1.42 billion across 37 deals in 2018 and $1.03 billion across 35 deals in 2017.

Blackstone's $385-million investment in Aadhar Housing