IFC will invest USD 200 million in Mahindra Finance
New Delhi, December 2 () The World Bank Group, IFC, said Monday that it has anchored an investment round of USD 200 million (about Rs 1,433 million rupees) in Mahindra and Mahindra Financial Services to create a dedicated group of financing for low income MSMEs. state.
According to a statement, at least USD 100 million will be allocated to micro, small and medium enterprises (MSMEs) owned by women.
IFC (International Finance Corporation) has invested USD 75 million from its own account and is mobilizing another USD 125 million as parallel loans, he said.
The USD 100 million dedicated to women will be supported by combined funding from the IFC-Goldman Sachs Opportunities for Women Entrepreneurs Fund.
In addition, Mahindra Finance has also committed USD 225 million to this group, he added.
An IFC study, conducted in 2018, estimates that the total credit gap for MSMEs in India is USD 397.5 billion, about 15 percent of gross domestic product. The financial gap for MSMEs is more acute in low-income states. Loans directed to MSMEs owned by women are even less frequent.
In the 2018-19 financial year, IFC provided more than USD 19 billion in long-term financing for developing countries, harnessing 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 more than 6.4 million clients and a managed assets of more than USD 10 billion. NKD HRS