US-based LeapFrog Investments has announced an investment of Rs 67 crore in Shriram Credit Co Ltd, the financial services distribution subsidiary of Shriram Capital.

LeapFrog, a $135-million fund, invests in firms focused on “inclusive” insurance and financial services in the “under-served” markets of Africa and Asia.

“While the insurance market is saturated in the developed world, emerging markets — particularly India — offer a vast opportunity for us with only a tiny fraction being insured. We chose Shriram as it shares our philosophy of focusing on the mass market. The mass market is profitable, and has scale, besides creating a positive social impact,” said Dr Jim Roth, Co-Founder and Partner, LeapFrog.

Mr G. S. Sundararajan, Managing Director, Shriram Capital, said, “We have had a spate of PE investments so far (from 23 PE firms). The investment from LeapFrog is more a strategic investment that will augment our ability to deliver insurance at the lower end of the market — those with a monthly income of Rs 5,000-25,000.”

Shriram group's financial services business manages assets over Rs 400 crore, across 650 lakh clients across the country.

LeapFrog's investment is expected to benefit 1 crore beneficiaries within a year. It is also expected to help Shriram Credit expand its branch network.

There are three businesses under Shriram Credit — Shriram Fortune (for financial products distribution), Shriram Insights (a broking firm) and Shriram Wealth Advisors.

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