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IFC to invest $200 mn in Mahindra Finance to fund MSMEs in poor states

At least $100 million will be earmarked for women-owned micro, small and medium enterprises

Press Trust of India  |  New Delhi 

fundraising
Illustration: Ajay Mohanty

Group arm on Monday said it has anchored an investment round of USD 200 million (about Rs 1,433 crore) in Mahindra and Mahindra Financial Services to create a dedicated pool of financing for in low-income states.

At least USD 100 million will be earmarked for women-owned micro, small and medium enterprises (MSMEs), according to a release.

"(International Finance Corporation) has invested USD 75 million from its own account and is mobilising another USD 125 million as parallel loans," it said.

The USD 100 million dedicated to women will be supported by blended finance from the IFC-Goldman Sachs' Women Entrepreneurs Opportunity Facility.

Also, Mahindra Finance has further committed USD 225 million to this pool, it added.

An study, conducted in 2018, estimates the total credit gap for in India to be USD 397.5 billion, around 15 per cent of gross domestic product. The financing gap for is more acute in low-income states. Targeted lending to women-owned MSMEs is even less prevalent.

In the financial year 2018-19, IFC delivered more than USD 19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

Ltd, part of the Mahindra Group, has over 6.4 million customers and an assets under management of over USD 10 billion.

First Published: Mon, December 02 2019. 16:35 IST
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