The world’s largest listed private equity firm, Blackstone Group, has joined Intel Capital, the corporate venturing unit of US-listed chip maker Intel, to back India-based microfinance technology company Fino.
Blackstone has invested R1.5bn (about $33m) in Fino to take a significant minority stake. UK-based accountancy firm Ernst & Young advised Fino on the fund raising.
Fino raised R700m in January last year from investors, including Intel Capital, HSBC Asian Ventures Fund 3, a venture fund of HSBC Private Equity Asia, and the International Finance Corporation (IFC), an investment arm of the World Bank. The company also raised an R800m round in 2007 from Intel, the IFC, as well as various Indian financial institutions ICICI Bank, ICICI Lombard and IFMR Trust, LIC, Union Bank of India, Corporation Bank and Indian Bank.
This means the company has raised at least R3bn since 2007.
Fino provides a technology platform which allows a range of basic financial products and services to be sold to more than 35 million customers across India. Fino said it now plans to double its number of customers.