The International Finance Corporation (IFC), the investment arm of the World Bank, plans to invest USD 7.5 million (INR 350 million) in AU Financiers Pvt Ltd., a non-banking financial company (NBFC) headquartered in Jaipur, India. AU Financiers, which raised USD 4.3 million (INR 200 million) earlier this year from private equity fund Motilal Oswal Venture Capital, is planning to raise an overall funding of USD 14 million (INR 650 million). Further financial details are unavailable. The company provides microfinance, agri-finance, insurance, vehicle financing and personal loans to rural and semi-urban areas in the Indian states of Rajasthan, Maharashtra and Gujarat and plans to expand its services to other states. According to the IFC project description, AU Financiers “will fund its growth and expansion through a mix of equity capital, bank loans and securitization assignments.”
By: Stefanie Rubin, Research Assistant
About the International Finance Corporation (IFC):
The IFC is the investment arm of the World Bank that aims to “foster sustainable economic growth in developing countries.” The IFC uses loan and debt securities, equity investments, and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approves investments.”
About AU Financiers Private Limited:
AU Financiers is a non-banking financial company operating primarily in the Indian state of Rajasthan. Its services include microfinance, agri-finance, vehicle financing and personal loans to rural and semi-urban areas. It currently has 57 offices, most of which are in Rajasthan. It also has a presence in Maharashtra and Gujarat and expects to expand its presence to other Indian states. It is planning to raise an overall funding of USD 14 million (INR 650 million). Financial details for the company are unavailable.
Additional Resources:
Source Article: VCCircle.com: “IFC to Invest Rs 35 Cr in AU Financiers,” http://in.reuters.com/article/indiaDeals/idINIndia-44351320091130
AU Financiers: http://www.aufin.in/
The Press Trust of India Ltd: “Motilal Oswal group co to invests Rs 20 cr in AU Financiers,” http://www.highbeam.com/doc/1G1-199430803.html
BusinessWeek: AU Financiers India Private Limited: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=45565140
MicroCapital Universe: IFC: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation
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