Avendus Future Leaders Fund – I invests in Ujjivan Small Finance Bank

Service

Private Equity

Sector

Consumer, FIG & Business Services

Date

December 2019

Deal Value

Undisclosed

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Avendus Future Leaders Fund – I ( the “Fund”), a SEBI registered category II Alternative Investment Fund (AIF), under the umbrella of Avendus Group has made an investment in Ujjivan Small Finance Bank Limited (USFB), one of India’s leading small finance banks. 

In the current market scenario, wherein the overall financial services sector is under stress, there are pockets of excellence which continue to outperform the market. It is against this backdrop that the Fund has made an investment in USFB which has a track record of profitable growth, leading market position, quality and depth of the management team. USFB is an excellent fit in the Fund’s investment strategy of backing market leading companies.

Ujjivan Small Finance Bank Limited is a mass market focused bank in India, catering to financially unserved and underserved segments and committed to building financial inclusion in the country. Prior to the investment, USFB operated as a fully owned subsidiary of Ujjivan Financial Services Limited (UFSL). UFSL, subsequent to obtaining approval from the RBI to establish and carry on business as a small finance bank, transferred its business undertaking to USFB, which commenced its operations on February 1, 2017. USFB currently operates in 24 states and union territories, 232 districts in India, catering to over 4.9 million customers.

As on September 30, 2019, USFB reported advances in excess of INR 127 billion and deposits of more than INR 101 billion. For the quarter ended September 30, 2019 USFB reported a profit after Tax of INR 926 million, a return on assets of 2.4% and a return on equity of 18.9%. 

Avendus Future Leaders Fund - I was launched in February 2019 and focuses on opportunistic investments in ‘best of breed’ market leading, late stage private companies in the consumer and financial services segments. This is the Fund’s second investment after Bikaji Foods International.

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