FIVE - STAR BUSINESS FINANCE LTDStatus: Completed investment
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Who is our customer
Five-Star is one of the few financial institutions in India that fully focuses on small enterprises, with an average loan size of about USD 6000, and a customer base of 5,270 as of March 2015. Despite a relatively well developed financial system in India, this segment remains deeply underserved. Five-Star aims at filling this gap with an attractive product offering, combined with conservative credit procedures.
What is our funding objective?
The facility will support the growth of the financial institution and the strengthening of its long term funding profile. It will help it grow to reach 10,000 clients by 2018.
Why do we fund this investment?
The target segment of Five-star is exclusively small-business owners (tea shops, vegetable vendors, small workshop owners etc.), very much in line with MASSIF and FMO mandate; additionality of our funding is expected to be very high. We will be the first international lender to Five-Star. Our fixed-rate and 5-year facility will strengthen the funding profile of this growing NBFC. We will also provide support with its management systems, its risk management framework and its client protection practices.
- Financial Institutions
- Effective date
- End date
- Total FMO financing
- INR 300.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)