Chennai-based IFMR raises $25 million from Eight Roads Ventures

Chennai-based IFMR Capital, a leader in providing capital market access to financial institutions serving for the underprivileged, has received $25 million in funding from Eight Roads Ventures, the proprietary investment arm of Fidelity International Ltd.

Earlier, the company raised $29 million from Leapfrog Investments. The investments will be used for expansion leading to facilitation of debt financing in new products and sectors. By providing a crucial link between the capital markets and more than 100 of India’s most prominent financial intermediaries, IFMR Capital is helping draw attention and resources to India’s financial inclusion sector and is leading the way for scaled growth of financial inclusion across the country.

Commenting on the funding, Kshama Fernandes, Managing Director, and CEO, IFMR Capital said in a press note,“IFMR Capital helps connect high-quality financial institutions working with underserved segments of debt capital markets. These segments are largely catered to by specialized NBFCs who often find it difficult to raise capital. As investors with a deep understanding of these sectors, we underwrite risk and connect these originators to the right pools of capital, enabling them to grow in a sustainable manner. We are excited to partner with Eight Roads Ventures and leverage its deep knowledge of the financial services sector to foray into new sectors and develop innovative products that will further serve the needs of our partner originators.”

Kabir Narang, Partner, and Head of Technology & Financial Services at Eight Roads Ventures India, who will be joining the board of IFMR, commented, “The non-bank financial services market in India remains an attractive segment for investment and we have been actively evaluating opportunities in this sector. IFMR Capital stood out for its unique business model and exceptional management team. The company is a pioneer in the financial inclusion sector and the largest organized company providing credit to NBFCs from its own balance sheet and from the balance sheets of other leading financial institutions. We look forward to working with the company as it builds on its leadership position in the market.”

Michael Fernandes, Partner at Leapfrog Investments remarked, “We are delighted to be part of IFMR Capital’s rapid growth story. This inspiring story of both profit and purpose proves that meeting the need for financial inclusion in India is a compelling investment proposition. We look forward to continuing our close partnership with this exceptional management team as they reach increasing millions of underserved people across the country.”