The International Finance Corporation (IFC), a member of the World Bank Group, recently announced plans to acquire a 20 percent stake in Swadhaar FinServe (SPFL), a non banking financial company that caters to India’s urban poor, for USD 2.25 million.
As of March 2010, SPFL had 27 outlets in Mumbai, Baroda and Pune, and planned proposed to expand its operations into the Indian states of Rajasthan and Madhya Pradesh. SPFL expects this equity infusion from IFC to help it expand access to finance to around 600,000 urban customers.
By Stefanie Rubin, Research Associate
About the International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About Swadhaar FinServe (SPFL):
Swadhaar FinServe is a subsidiary non-banking financial company of Swadhaar FinAccess that caters to the urban poor in India. According to the MIX Market, the clearinghouse for microfinance information, the company had a gross loan portfolio of USD 1.1 million, 8,234 active borrowers, and total assets of USD 2.1 million as of 2008.
Additional Resources:
Source Article: Business Standard: IFC Eyes 20% Stake in Swadhaar FinServe: http://www.business-standard.com/india/news/ifc-eyes-20stake-in-swadhaar-finserve/96801/on
MicroCapital Universe: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe: Swadhaar FinServe (SPFL): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Swadhaar+FinServe+Private+Limited
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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