"The sector is slowly coming out of the liquidity tightness. The fresh infusion will help us leverage better," Village Financial's Managing Director Kuldip Maity told ET.
"We are in dialogue with investors. We expect to complete the process in January," Maity said.
Earlier, it raised Rs 40 crore from non-bank lender Capital First and Mumbai-based firm Param Capital.
The MFI has more than doubled its loan portfolio to Rs 943 crore at the end of September and is looking to continue with the momentum before its proposed initial public offer, which may happen sometime in the second half of the next financial year.