It will use the money to strengthen and support downstream companies, expansion plans and increase the range of financial products.
IFMR Holdings integrates a ‘brick and mortar’ financial institution offering to rural clients a diversified range of products, a financing platform committed to financial inclusion, and a financial products design entity, according to Claude Périou, CEO of Proparco.
Chennai-based IFMR Holdings operates through three businesses: IFMR Rural Channels and Services (IRCS) which is a financial services provider operating through a network of branches in remote rural India. It provides services to over 600,000 clients through 237 branches across Tamil Nadu, Orissa and Uttrakhand.
IFMR Capital facilitates debt capital for financial institutions that lend to financially excluded households and enterprises. It has facilitated more than Rs 20,000 crore of financing to sectors such as microfinance, affordable housing finance and small business loans.
IFMR Rural Finance designs and supports delivery of financial services.
Early this year, IFMR announced to raise $37 million debt fund to invest in businesses that target consumers at the bottom half of the pyramid, such as firms that finance affordable housing or agri-business.
Founded in 1977, Proparco is a PE firm which provides growth capital to companies in emerging and developing countries.