New Delhi, July 16 -- L&T Finance, the non-banking financial services arm of Indian conglomerate Larsen & Toubro Group, has roped in an international institutional investor for a $100 million (Rs 962 crore) financing, VCCircle has learnt.
The upper-layer non-banking lender, which also counts Kotak AMC, Invesco, Motilal Oswal, and Mirae amongst the list of its shareholders, has received the loan from the International Finance Corporation (IFC ), the private sector lending arm of the World Bank Group.
The Washington, DC-based firm will provide a senior, secured, dollar-denominated loan with a tenor of up to three years to the Mumbai-based company.
The loan is part of a $250-million investment approved by the IFC, according to a disclosure.
Queries sent to L&T Finance remained unanswered till the time of publishing.
A significant portion of IFC's loan is expected to be deployed to support women borrowers. At least 40% of the capital will be used for lending to women microentrepreneurs or self-employed women. Half of IFC's loan will be directed towards rural areas, while a portion will be used to finance two-wheelers and electric vehicles.
L&T Finance, which started operations in 1994, is the financial services arm of engineering giant Larsen & Toubro Ltd. It provides a wide array of loans in segments such as urban finance, farmer finance, and rural business finance. These span two-wheeler loans, farm equipment (tractor) finance, microfinance, personal loans, home loans, and SME business loans, among others.
As of June 2026, L&T Finance had a loan book of Rs 1,29,634 crore, with 98% of the portfolio being retail loans. It currently operates a network of 2,840 branches covering 27 states and Union Territories of India, and serves over Rs 2.9 crore customers.
IFC is a returning investor to L&T Finance. In 2019, it had led a $550 million (Rs 3,769 crore) investment round in the company alongside BNP Paribas, Citibank and DBS Bank. IFC had contributed $125 million.
Last month, it provided $71 million (around Rs 670 crore) in debt financing to Sify Infinit Spaces, a wholly-owned subsidiary of Sify Technologies. In May, Aditya Birla Capital raised $95 million in debt from IFC.
Published by HT Digital Content Services with permission from VC Circle.