MICROCAPITAL BRIEF: Annapurna of India Borrows $10m from MicroVest to Expand Microfinance for Rural Women

MicroVest, an asset management subsidiary of US-based DAI Global, recently lent USD 10 million to Annapurna Finance, an India-based microfinance institution (MFI) that lends to groups of women for purposes such as agriculture, crafts, solar lighting and housing improvements. The MFI also lends to micro-, small, and medium-sized enterprises (MSMEs) and has a special product for marginalized groups, such as people with disabilities, single mothers and the transgender community. Beyond loans, Annapurna provides insurance, entrepreneurship and financial literacy training.

Annapurna was founded in 2009 and reports “2.3 million borrowers, with 99 percent being female.” As of 2022, the MFI manages a portfolio of INR 65.5 billion (USD 799 million) with an average loan size equivalent to USD 400.

MicroVest was founded in 2003 and specializes in channeling wholesale loans to funders of MSMEs in low- and middle-income countries. For 2022, the company reported 20-percent average return on assets, ending the year with a gross loan portfolio of USD 1 billion.

DAI Global is an employee-owned firm that is active in 100 countries in areas such as “economic development, sustainable business, climate change and the environment, governance, gender, and health.” The firm has 16 offices and employed 5,000 people as of 2021.

By Rohit Dayanand, Research Associate

Sources and Additional Resources

MicroVest press release
https://microvestfund.com/microvest-invests-10-million-in-annapurna-to-support-financial-inclusion-for-women-in-india/

Annapurna homepage
https://annapurnafinance.in

DAI Global homepage
https://www.dai.com

Previous MicroCapital brief on MicroVest
/microcapital-brief-sonata-borrows-6m-from-microvest-for-group-microlending-to-women-in-rural-india/

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