Janalakshmi Financial Services (JFS), a microfinance institution (MFI) located in India, has raised INR 45.8 crore, the equivalent of over USD 10 million, in a second round of funding.The main funders are Tree Line Asia Master Fund (Singapore) Private Limited, a hedge fund with offices in Hong Kong and Singapore, and Bellwether Microfinance Fund, a private equity fund based in India. Narayan Ramachandran, a JFS board member, also invested personal capital. The amounts invested by each party have not been specified. JFS plans to use the funds to support an expansion from six cities to thirty-five cities in the next year. The MFI’s first round of funding saw investments from Bellwether; Lok Capital, a microfinance investment vehicle based in India; and the Michael and Susan Dell Foundation, a US-based organization that provides fuding to MFIs and other social ventures.

By Christopher Maggio, Research Assistant

About
Janalakshmi Financial Services (JFS)

Description
Janalakshmi Financial Services (JFS) is a microfinance institution (MFI) located in India. It is focused primarily on urban customers and offers loans, savings, and microinsurance.

As of March 8, 2010, it operates in six cities, has over 100,000 customers and a gross loan portfolio of INR 85 crore, the equivalent of over USD 18.6 million. JFS does not report to the MIX Market, the microfinance information clearinghouse.

Contact:
Address:
Head Office
No. 302, 7th Cross
Domlur Layout
Bangalore – 560 071
Phone: +91 080 42595700
Fax: +91 080 41525770 CUT
Email: info@janalakshmi.com

About
Tree Line Asia Master Fund (Singapore) Private Limited

Description
Tree Line Asia Master Fund (Singapore) Private Limited is a hedge fund with offices in Hong Kong and Singapore. It has invested in Janalakshmi Financial Services (JFS), a microfinance institution (MFI) located in India. Other investments include stakes in Goldman Sachs and Mount Everest Mineral Water.

About
Bellwether Microfinance Fund

Description
The Bellwether Microfinance Fund is an onshore Indian venture fund that makes equity investments in microfinance institutions (MFIs). The Fund invests in start-ups as well as established medium-sized nonprofit MFIs. The USD 20 million fund is independently managed by Caspian Advisors.

Just the Facts
-Country of Incorporation: India
-Year Founded: 2005
-Total Assets (as of day/month/year): USD 20 million (as of 2007)
-Number of MFI Investments (as of day/month/year): 14 (as of 2007)
-Assets Allocated to MFIs (as of day/month/year): USD 15.7 million (as of 2007)
-Area of Operation: Global
-Participant(s)/Backer(s)/Investor(s): Gray Ghost, Netherlands Development Finance Company, Hivos-Triodos Fund
-Investment Horizon: 2 years (for Loan and Debt Securities)
-Instruments: Loan and Debt Securities, Equity, Guarantees
-Fund Currency: INR
-Fund Manager: Caspian Advisors

Contact Information
Viswanatha Prasad
Fund Manager
prasad@bellwetherfund.com
+91 40 6646 0505

Additional Resources:
LiveMint article entitled ‘Janalakshmi Financial raises $10 million’: http://www.livemint.com/2010/03/07223157/Janalakshmi-Financial-raises.html

MicroCapital’s Microfinance Universe profile: Janalakshmi Financial Services (JFS)

MicroCapital’s Microfinance Universe profile: Tree Line Asia Master Fund (Singapore) Private Limited

MicroCapital’s Microfinance Universe profile: Bellwether Microfinance Fund