Ujjivan Financial Services, a Bangalore, India-based microfinance institution, is pleased to announce the successful completion of the fourth round of equity infusion. Originally planned for USD 15 million, the equity round was over-subscribed and increased to USD 19 million. The incremental capital was largely subscribed by existing shareholders, including Unitus Equity Fund (UEF), managed by Elevar Equity L.L.C.; Bellwether Microfinance Fund; Michael & Susan Dell Foundation; A.W. Holdings; and individual investors, including Ujjivan promoter and CEO Samit Ghosh. Five new investors in this private placement transaction include Sequoia Capital, Lok Capital, Unitus Equity Fund II (UEF II), India Financial Inclusion Fund and SIDBI. The additional funding increases Ujjivan’s Paid up Capital and Reserves to more than USD 21 million, and makes Ujjivan the fourth highest capitalized microfinance institution in India. The capital will be utilized to support the Company’s major expansion plans over the next twelve months and to meet the enhanced capital adequacy norms set by the Reserve Bank of India.
Speaking on this transaction, CEO Samit Ghosh said “We have expanded our institutional investor base to create a balance between socially- and market-driven private equity investors to ensure that our social mission is not diluted, and at the same time, Ujjivan can maintain ambitious growth plans. We are very pleased to receive the unwavering support of the existing and new investors, especially during these challenging economic times. It is a testament to the future of the microfinance industry in India.”