IFC to invest USD 200 mn in Mahindra Finance
At least USD 100 million will be earmarked for women-owned micro, small and medium enterprises (MSMEs), according to a release.
"IFC (International Finance Corporation) has invested USD 75 million from its own account and is mobilising another USD 125 million as parallel loans," it said.
The USD 100 million dedicated to women will be supported by blended finance from the IFC-Goldman Sachs' Women Entrepreneurs Opportunity Facility.
Also, Mahindra Finance has further committed USD 225 million to this pool, it added.
An IFC study, conducted in 2018, estimates the total credit gap for MSMEs in India to be USD 397.5 billion, around 15 per cent of gross domestic product. The financing gap for MSMEs is more acute in low-income states. Targeted lending to women-owned MSMEs is even less prevalent.
In the financial year 2018-19, IFC delivered more than USD 19 billion in long-term financing for developing countries, leveraging 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 over 6.4 million customers and an assets under management of over USD 10 billion. NKD HRS