Aavishkaar Goodwell (AGI), a for-profit business development company that provides equity finance to microfinance organizations in India, is receiving USD 8 million in investments from the Netherlands Development Company (FMO), together with IFC, a member of the World Bank Group that provides financial products to build the private sector in developing countries, and global investment institution Deutsche Bank, to support the company in expanding its outreach.
The proposed IFC investment is an equity investment in AGI of up to USD 5 million for up to 19% shareholding in the company. This investment will support the launch of up to 60 greenfield microfinance organizations and the expansion of up to 10 microfinance institutions (MFIs) across India.
Aavishkaar Goodwell plans to provide equity capital and hands-on support to microfinance organizations. The company is in the process of building up a USD 25 million portfolio across India. Its investments include USD 2 million in MFI Share Microfin Ltd, which plans to expand from more than a million clients today to 6 million by 2012. Aavishkaar Goodwell expects to invest about half of its portfolio in microfinance start-ups, as an equity partner in the microfinance franchise initiative, IntelleCash. This initiative aims to reach 10 million clients by 2011. (For details on this initiative, refer to a previous MicroCapital article.)
Aavishkaar Goodwell, established in 2006, aims to improve access to affordable financial services by developing and scaling up entrepreneurial microfinance organizations and integrating them into the mainstream financial sector. The company has fund assets of USD 11.2 million and currently has 1 active microfinance investment as of June 2007.
–Monica Sharma, Research Assistant
Additional Resources:
Mix Market: www.mixmarket.org. Washington, D.C.
Aavishkaar Goodwell: www.aavishkaargoodwell.com.
India eNews: IFC, FMO, and Deutsche Bank Invest in Aavishkaar Goodwell to Support Growth of Microfinance in India
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[…] The International Finance Corporation, Netherlands Development Company, and Deutsche Bank Invest Jointly in Indian Microfinance Private Equity Company Aavishkaar Goodwell (August 2007) https://www.microcapital.org/microcapital-story-the-international-finance-coporation-netherlands-deve… […]