Mahindra Finance gets fresh investment from World Bank's IFC
- Country:
- India
HIGHLIGHTS
- IFC has invested USD 75 million from its own account and is mobilizing another USD 125 million as parallel loans.
- At least USD 100 million will be earmarked for women-owned micro, small and medium enterprises (MSMEs).
World Bank Group arm International Finance Corporation (IFC) 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 MSMEs 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. "IFC has invested USD 75 million from its own account and is mobilizing 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 IFC study, conducted in 2018, estimates the total credit gap for MSMEs in India to be USD 397.5 billion, around 15 percent of gross domestic product. The financing gap for MSMEs 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.
Mahindra & Mahindra Financial Services Ltd, part of the Mahindra Group, has over 6.4 million customers and assets under management of over USD 10 billion.
(With inputs from agencies.)
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