CreditAccess Grameen has raised $50 million from International Finance Corporation (IFC) under the external commercial borrowing route.
The investment from IFC at this juncture is a major confidence booster for the entire microfinance space, which is reeling under severe stress and asset quality degeneration.
"With this $50 million from IFC, we are firmly moving towards our FY28 medium-term strategy of sourcing 25%-30% of funds from foreign sources while maintaining strong control over our average cost of borrowings," CreditAccess Grameen's chief financial officer Nilesh Dalvi said.
The funding will help the country’s largest non-banking financial company-micro finance institution (NBFC-MFI) to cater to 3-4 million additional women borrowers, engaged in agriculture and agri-related activities.
"IFC's investment will foster greater competitiveness within India’s financial sector and we look forward to supporting the company in the long-term," Wendy Werner, IFC country head for India was quoted as saying in a statement.
"Together, we will help bring more individuals engaged in agriculture and agri-related activities into the formal economy, encouraging the growth of women owned micro-enterprise portfolios, particularly targeting underserved and harder-to-reach rural areas,” he said.
Budget with ET
Budget Highlights: Gareeb, youth, annadata and naari feature in Budget. What about taxes?
New vs Old tax regime: Here's a decoder to help you choose the right one
Will you pay more under new tax regime or old? Calculate here
"With this $50 million from IFC, we are firmly moving towards our FY28 medium-term strategy of sourcing 25%-30% of funds from foreign sources while maintaining strong control over our average cost of borrowings," CreditAccess Grameen's chief financial officer Nilesh Dalvi said.
The funding will help the country’s largest non-banking financial company-micro finance institution (NBFC-MFI) to cater to 3-4 million additional women borrowers, engaged in agriculture and agri-related activities.
"IFC's investment will foster greater competitiveness within India’s financial sector and we look forward to supporting the company in the long-term," Wendy Werner, IFC country head for India was quoted as saying in a statement.
"Together, we will help bring more individuals engaged in agriculture and agri-related activities into the formal economy, encouraging the growth of women owned micro-enterprise portfolios, particularly targeting underserved and harder-to-reach rural areas,” he said.
