Mumbai: Ujjivan Financial Services (P) Ltd, the country’s fourth largest microlender, on Friday said it had raised 600 crore through a combination of primary issuance of shares and partial secondary exits to a few of its existing shareholders.

The capital will be used to expand its loan book across products and geographies.

The money has been raised from a clutch of investors, including CX Partners Fund I Ltd, CDC Group Plc, NewQuest Asia Investments II Ltd and Bajaj Holdings and Investment Ltd.

Existing investors International Finance Corp. and Elevar Equity Mauritius have also increased their investments.

“This equity transaction is a strong indicator of the increasing interest of foreign and domestic investors and development finance institutions in microfinance institutions," said Samit Ghosh, managing director and chief executive officer, Ujjivan Financial Services.

Avendus Capital Pvt. Ltd was the financial advisor to Ujjivan Financial and the selling shareholders.

The Bengaluru-based company has applied for a small finance bank licence.

Small finance banks are aimed at furthering financial inclusion by providing loans to small business units, small and marginal farmers, micro and small industries and other unorganized sector entities, through high-technology, low-cost operations.​

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