Lok Capital, a venture capital firm, and one of its limited partners, Proparco, the private sector investment arm of the French development agency AFD, have together invested $5 million in IFMR Rural Channels.
Lok Capital’s series A investment in IFMR Rural Channels, which will be paid out in a single tranche, will be used for building Kshetriya Gramin Financial Services (KGFS) which offers financial services in remote rural locations.
KGFS as an entity aims at delivering a complete suite of products and services to ensure financial wellbeing of households and enterprises in remote rural locations under its unique wealth management approach. At present the KGFS network has 110 branches that serve about 200,000 households in Tamil Nadu, Orissa and Uttarakhand.
Commenting on the investment, S.G. Anilkumar, CEO of IFMR Rural Channels and Services said, “Lok and Proparco’s investment in IFMR Rural Channels and Services (IRCS) indicates their alignment with our mission of delivering high quality financial services in a way that has a profound impact on rural households. This investment also validates the sustainability of the KGFS Model that believes in the core philosophy of adding value to the customer and thereby becoming valuable as a business. With this infusion, we envisage further expansion of the KGFS Model to other remote rural locations across the country in a phased manner.“