IFMR Capital germinated from a seed of an idea. When the founders of our company started out, they neither had the finance nor the investors nor others who really understood what they were trying to do! What they did have plentiful though, was determination, belief in their ideas, and most importantly, a burning fire to do something in the financial inclusion space. To create a financially stable model that would tap into the millions of households in India that would otherwise have no access to financial services.
The road that IFMR Capital chose to tread, apart from being novel, was also one with many hurdles. However, the team’s unrelenting belief in its vision saw the company scale new heights in paving a unique path for itself in the financial world. Kindly join us in reliving some of our key moments over the years:
- Heighland Leising and Finance was acquired and renamed as IFMR Trust Guarantee Company. Later christened as IFMR CapitalExtended our first loan to Satin Credit Care
- Arranged our first securitization transaction with Equitas as our client, a INR 16.2 crore deal sizeArranged our second securitization which marked the first mutual fund investment in the Indian microloan securitization market
- In a bid to connect small, high quality Originators with capital markets, performed our first Multi Originator Securitization (MOSEC).Successfully facilitated our third MOSEC transaction which marked our first collaboration with a private wealth investor.Achieved another significant milestone upon completion of our largest single Origination transaction. This INR 100 crore deal was in the microfinance sector and had a mutual fund, an insurance company and a private sector financial services company acting as the investors.The country witnessed the shock of the AP crisis as well. Though there was an air of uncertainty in microfinance, our fleet on street approach with vigilant on ground monitoring and innovative data analytics ensured we emerged stronger out of the crisis. This period saw us raise funds for our partners to the tune of INR 6.220 billion, demonstrating the sustainability of our business model.The faith in our potential was reposed when we became the smallest NBFC to be initiated with an ICRA A (-) rating.
- Received a rating of CARE A1 by CARE, in addition to having the long term rating of A- reaffirmed.Underwriting guidelines for Small Business Loans (SBL) and Affordable Housing Finance (AFH) was approved by the Board. This marked our first step toward other sectors in a bid to reach out to more clients in the financial inclusion space.Furthered our product diversification by completing our first Commercial Paper (CP) issuance with a deal size of INR 7 crore and with high net worth individuals as investors. A major milestone for us as it provides us the ability to tap diversified sources of funding and serves as an alternative to bank credit for funding short-term capital requirements
- Our work on risk analytics presented at various forums such as the Reserve Bank of India-College of Agricultural Banking (RBI-CAB), at the leading rating agencies and Tata Institute of Fundamental Research (TIFR) as the first seminal piece of work in a scientific understanding and measurement of credit risk in retail asset classes in India.
- Upgraded to A rating by ICRA in consideration of the growth in business volumes along with diversification into small business loans and affordable housing finance asset classes while maintaining good asset quality.We partnered with the Asian Development Bank (ADB) to launch the first of its kind large scale partial guarantee programme, which provides partial credit guarantee on loans to microfinance institutions in India.Further diversified and launched practice in Vehicle Finance.Successfully closed our first MOSEC transaction in SBL sector in which eight high quality Originators participated.
- IFMR Holdings, the parent company, raised equity from Leap FrogInvestments.Pioneered the first ever Mortgage Backed Securitization (MBS) for an AHFC, Hebros AHL, leading the way for AHFCs to enter capital markets.Successfully launched another product, the Collatorized Bond Obligation (CBO). The INR 980 million CBO saw participation from 11 first-time issuers of non-convertible debentures.Took our first exposure in the Agriculture Sector. First product is a term loan of size INR 1.5 crore with Origo Commodities India Pvt. Ltd. as the client.A significant milestone in our expansion of investor base when a Commercial Paper we issued was subscribed by a Mutual Fund for the first time.
- Concluded our first External Commercial Borrowing (ECB) deal for Satin Creditcare Network Limited, unlocking a total financing of INR 630 million.Cracked the Tier II market and by the end of 2015, arranged INR 880 million of funding to clients via the placement of long term subordinated NCDs and through placement of Cumulative, Non-Convertible, Redeemable, Preference Shares (CNCRPS)The ADB guarantee program brought on IndusInd bank as a principal investor further enabling MFIs catering to the very lowest income households across the country to access alternative sources of debt financing
- Partner tally reached a milestone number of 100 high-quality Originators across asset classesVentured into Corporate Finance as a new asset classCommenced our retail portfolio via Direct Origination of MFI and small business loans with a retail book of INR 101 millionIntroduced much needed Tier II products for our partners by way of long-term subordinated non-convertible debentures and preference shares