The International Finance Corporation (IFC) is planning investment in Shre Pathrakali Finance Company, a microfinance start-up that has launched operations in Uttar Pradesh (UP). The company plans to raise equity capital of about Rs 7.5 crore ($1.9 million) to start its operations in the state.

IFC, the multilateral lending arm of the World Bank, is considering an equity investment, along with other investors, to facilitate the company to start and expand its operations. Other shareholders will include Aavishkaar Goodwell, a microfinance- focused private equity firm.

Shre Pathrakali’s registered office is in Chennai and its operations are headquartered in Varanasi, UP. It started operations in Varanasi in August this year with four branches. The company will initially focus on opening branches in UP before expanding to other states. Govind Singh, ex-business head for micro banking at ICICI Bank, is the promoter and CEO of the firm.

“The project is expected to increase access to finance to over 700,000 women borrowers over a five-year period in the most poorly served microfinance markets of India,” the World Bank’s financing arm said on its website.

IFC said its investment in a state like UP and in a microfinance company at an early stage would encourage other investors and entrepreneurs to expand operations in the state and nearby states.