Microfinance Focus June 22, 2011: Bangalore based NBFC Microfinance Institution (MFI); Janalakshmi Financial Services today announced its equity raise of Rs. 65 crore as part of its Series C round. Janalakshmi’s equity raise is the first significant equity raise announced since the onset of the microfinance crisis in India.

Citi Venture Capital International (CVCI), a global investment firm has taken a majority stake in the company as part of this round; other participants are existing investors in the company. Additional funds are likely to be raised in the coming weeks as part of the Series C round.

Unitus Capital was lead financial advisor and arranger to Janalakshmi and its shareholders for the transaction. Morgan Stanley also acted as an advisor.

Investors in Janalakshmi’s earlier rounds were Bellwether, Lok Capital, the Michael and Susan Dell Foundation, Treeline Investors, and Narayan Ramachandran, ex country head of Morgan Stanley India.

Janalakshmi Financial Services Private Limited is among those microfinance institutions that focus on the urban microfinance space in India. It is an Indian MFI that has a structure of a Social Business, with the entire promoter stake being held in a Not-For-Profit Section 25 Company, Janalakshmi Social Services.

CVCI is involved in the business of private equity investing. It currently manages over $7 billion in equity investments and committed capital. CVCI has a team of over 45 professionals worldwide with a local presence in Singapore, Mumbai, New Delhi, Hong Kong, London, New York and Santiago. CVCI is part of Citi Capital Advisors.