IFC to invest $75m in Mahindra Finance's MSME fund
Mumbai: World Bank Group arm IFC has anchored an investment round of $200 million in Mahindra Financial Services to create a dedicated pool of financing for the micro, small and medium enterprises in low-income states.
The IFC has invested $75 million from its own account and is mobilising another $125 million as parallel loans, a statement said. Mahindra Finance has further committed $225 million to this pool. At least $100 million will be earmarked for women- owned MSMEs.
"Although the financing needs of rural and women-owned enterprises are not radically different, the level of financial exclusion is higher," IFC's manager for financial institutions group for South Asia Hemalata Mahalingam said.
The dedicated gender line and focus on unreached segments will contribute to addressing these gaps and demonstrate the commercial viability of investing in women and low-income groups, she said.
Mahindra Finance vice-chairman and managing director Ramesh Iyer said, "availability of credit for income generation, especially to women and low-income households, will further accelerate financial inclusion." In 2018, the IFC had invested $100 million in the Mahindra group company to increase loans to farmers to buy tractors, among others.