Mahindra and Mahindra Financial Services said on Monday the IFC, part of the World Bank Group, has anchored an investment round of $200 million in the company to create a dedicated pool for micro, small and medium enterprises (MSMEs) in low-income states. In a regulatory filing, Mahindra Finance said the IFC had invested $75 million from its own account and was mobilising $125 million as parallel loans.
At least $100 million will be earmarked for women-owned MSMEs and supported by blended finance from the IFC-Goldman Sachs` Women Entrepreneurs Opportunity Facility. Mahindra Finance has committed $225 million to this pool. To expand financial services for MSMEs, the IFC had been systematically supporting India`s non-banking financial companies (NBFCs), said Hemalata Mahalingam, Manager, Financial Institutions Group, South Asia, IFC.
Ramesh Iyer, Vice-Chairman, and Managing Director, Mahindra Finance, said, “Mahindra Finance has been powering inclusive growth in rural communities for over 25 years. Our experience in these markets reveals that to achieve true financial inclusion, access to formal credit for financially under-served segments is a necessity. Availability of credit for income generation, especially to women and low-income households, will further accelerate financial inclusion.”