India-based financial services provider IFMR Holdings has secured $25m in a round led by microfinance provider Accion that included microfinance company Lok Capital and investment firm LeapFrog Investments.
IFMR aims to offer financial services to individuals and businesses in India, where 86% of people do not borrow from banks and only one in two consumers has a savings account. Only around 4% of the population has insurance.
IFMR operates three distinct entities; IFMR Capital offers debt capital, IFMR Rural Finance provides services to users in remote areas and IFMR Rural Channels enables consumers in rural places to get insurance and pensions, and to apply for credit.
IFMR Holdings is the financial services arm of IFMR Trust. The company will use the funding to support its growth across India.
Michael Schlein, CEO and president of Accion, said: “[IFMR] are tackling some of the most important issues facing India today by reaching millions of financially excluded households and enterprises, especially in extremely rural areas not served by the banking system.
“As a result, more people are able to create and grow businesses, insure themselves and their families, and build better lives. We share their vision and are thrilled to be their partner.”