MICROCAPITAL BRIEF: India-based Ujjivan Financial Services Disburses Loans Totaling $166m Via Direct Deposit to Bank Accounts

Ujjivan Financial Services, a Bangalore-based microfinance institution, has disbursed local currency loans totaling the equivalent of USD 166 million, approximately 50 percent of its total loan disbursements this year, directly to customer’s bank accounts. This was facilitated by helping clients open bank accounts, activating dormant accounts and training customers to use the accounts, as well through the use of automated teller machines (ATMs). During 2013, 780,000 customers in semi-urban and rural areas and 510,000 customers in urban areas took out loans from Ujjivan. The MFI does not accept deposits.

As of June 30, 2012, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207 million, return on assets (ROA) of 3.36 percent and return on equity (ROE) of 11.79 percent. Ujjivan serves clients in 21 states in India through 322 branches.

By Juan Blanco, Research Associate

About Ujjivan Financial Services

Ujjivan Financial Services is a microfinance institution (MFI) based in Bangalore, India. It was founded in 2004 and focuses on serving low-income women in urban and semi-urban areas. Its products include business loans, educational loans, emergency loans and life insurance. As of June 30, 2012, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207.4million, return on assets (ROA) of 3.36 percent and return on equity (ROE) of 11.79 percent. During 2013, 780,000 customers in semi-urban and rural areas and 510,000 customers in urban areas took out loans from Ujjivan. The MFI does not accept deposits. Equity investors in Ujjivan include Unitus Equity Fund (UEF), a US-based private equity fund that invests in microfinance institutions (MFIs); Bellwether Microfinance Fund, an India-based microfinance investment vehicle (MIV); Michael and Susan Dell Foundation, a US-based non-profit organization; AW Holdings, an Indian financial services company; Sequoia Capital, a US-based venture capital firm; Lok Capital, a Mauritius-based venture capital fund; Elevar Equity, a global investor based in Bangalore; India Financial Inclusion Fund (IFIF), a microfinance equity fund; and the Small Industrial Development Bank of India (SIDBI), a development bank in India that aims to aid micro-, small and medium-sized enterprises (MSMEs).

Sources and Additional Resources

[1] Business Line, “Ujjivan Financial disburses ?1,000 cr via cashless mode,” 2014, http://www.thehindubusinessline.com/news/states/ujjivan-financial-disburses-1000-cr-via-cashless-mode/article6101761.ece

MicroCapital, September 23, 2013, Ujjivan Finanacial Services Raises $7.9m from Oikocredit for On-Lending to Microfinance Clients

MicroCapital, August 8, 2013, Standard Chartered Bank (SCB) Loans $13m to Indian MFIS Janalakshmi Financial Services Private Limited, Ujjivan Financial Services Private Limited

MicroCapital, February 6, 2012, Indian Microfinance Institution Ujjivan Financial Services Raises $25m in Equity from FMO, Wolfensohn, LOK, IFIF, Sequoia, Unitus, Elevar

MicroCapital Universe: Ujjivan Financial Services

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