World Bank Group arm International Finance Corporation on Monday said it has anchored an investment round of $200 million (about Rs 1,433 crore) in Mahindra & Mahindra Financial Services Ltd. to create a dedicated pool of financing for micro, small and medium enterprises in low-income states.
At least $100 million will be earmarked for women-owned MSMEs, according to a release.
"IFC has invested $75 million from its own account and is mobilising another $125 million as parallel loans," it said.
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The $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 $225 million to this pool, it added.
An IFC study, conducted in 2018, estimates the total credit gap for MSMEs in India to be $397.5 billion, around 15 percent 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.
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In the financial year 2018-19, IFC delivered more than $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 assets under management of over $10 billion.
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