Janalakshmi Financial Services (JFS), an MFI focussed on the urban poor has raised $10 million (Rs 45.8 crore) in its second round of funding. The MFI is promoted by former Citigroup Inc. banker Ramesh Ramanathan.

The round of fund raising was led by Tree Line Asia Master Fund (Singapore) Pte Ltd, a Hong Kong and Singapore-based hedge fund along with Bellwether Microfinance Fund, an existing investor in the firm. Also Narayan Ramachandran has joined JFS’s board, invested in his personal capacity, he was earlier head of Morgan Stanley India Investment Fund Inc.

Janalakshmi plans to use this fund for expanding its operations and work on financial inclusion of the urban poor. It is a Bangalore based MFI with presence in six cities with around 100,000 clients. It has outstanding loans of Rs 85 crore. Over the next year, it plans to extend operations into 35 cities, with outstanding loans of Rs300 crore.