The fund raise comes a few months after Svatantra's acquisition of Chaitanya India Fin Credit for 14.79 billion rupees ($178 million), that helped it become one of India's largest non-bank microfinance companies.

Privately-held Svatantra did not disclose details on how it plans to use the funds or the valuation at which it raised them.

The promoter group, an Indian term for large shareholders who can influence company policy, will continue to have a majority stake in the company.

Svatantra, backed by Ananya Birla, daughter of billionaire industrialist Kumar Mangalam Birla, provides small personal loans to rural and semi-urban customers. It manages assets worth 130 billion rupees.

CreditAccess Grameen and Fusion Micro Finance are its peers.

Lenders in the world's biggest microfinance market are betting big on increasing market penetration, with a only little over one-third of the addressable market having access to credit facilities.

($1 = 82.9020 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)