IFC (International Finance Corporation) has carried out INR 3,769 investment round in LT Finance, an investment arm of LT Finance Holdings, according to a media report.
The financial services provider has already received the first tranche of $275 million from its investors, LT Finance said in its statement.
Besides other investors, US-based IFC invested $ 125 million in the finance company.
BNP Paribas, Citibank and DBS Bank will also take part in the round, LT Finance told the daily news, VC Circle.
According to above-cited media reports, the finance company has said it will use the capital, being raised through external commercial borrowings, to expand its farm equipment finance portfolio by providing loans to farmers looking to acquire equipment to modernise their processes.
Part of its strategy involved lending to customers who did not have access to last-mile credit, MD and CEO of LT Finance Holdings, Dinanath Dubhashi told the daily news.
Dubhashi added, The investment from IFC and other investors reaffirmed the companys growth plans and its ability to diversify its liabilities.
Addressing the large rural finance gap and supporting the modernization of agriculture are key components in sustaining Indias growth story, Group Manager ofIFC South Asia financial institutions, Hemalata Mahalingamtold the daily news.