by Amira Berrada - Deals, South Asia, East Asia and Pacific, Technology -

MICROCAPITAL BRIEF: Electronic Network Cash Tellers (ENCASH) Raises $2.56m from Funds Managed by Incofin, responsAbility to Deploy ATMs in the Philippines

Rural Impulse Funds II SA and responsAbility Ventures I, funds managed by Belgium’s Incofin Investment Management and Switzerland’s responsAbility Social Investments AG, respectively, recently infused a total of USD 2.56 million in equity capital into Electronic Network Cash Tellers Incorporated (ENCASH), a Philippines-based automatic teller machine (ATM) distributor [1].

ENCASH focuses on deploying ATMs in rural areas where financial access is limited [1]. ENCASH also provides ATM services and software to rural Filipino banks and cooperatives, enabling the financial institutions to “increase their distribution capability, generate higher fee-based revenue, increase customer traffic and acquire new customers” [1]. With 337 ATMs currently installed as of January 2012, the equity injection will help ENCASH scale up its business [1]. ENCASH does not report data to the US-based nonprofit data provider Microfinance Information Exchange (MIX) and financial information on the institution is not otherwise available.

The transaction was structured and facilitated by Unitus Capital, an Indian-based affiliate of US-based Unitus Labs that specializes in arranging capital for Asian social businesses. While the amount of the investment made by each fund was not released, only Incofin will take a position on the ENCASH Board of Directors [1].

Amira Berrada, Research Associate

About Electronic Network Cash Tellers Incorporated (ENCASH): Electronic Network Cash Tellers Incorporated (ENCASH) is a company that deploys automated teller machines (ATMs) in the Philippines. Founded in 2007, ENCASH aims to provide access to traditional banking and financial services in rural areas of the Philippines. As of January 2012, the company had 337 ATMs installed.

About Rural Impulse Fund II: Incofin Investment Management, a private Belgian company, manages two funds that invest in rural microfinance institutions (MFIs) that are deemed commercially viable: Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns. The funds invest primarily through loans, though they make equity investments and guarantees as well. As of October 31, 2011, Rural Impulse Fund II has outstanding investments of EUR 33.1 million (USD 46.0 million) and a fund size of EUR 120 million (USD 173 million).

About Incofin Investment Management: Incofin Investment Management is a private Belgian company that creates and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.

About responsAbility Ventures I: responsAbility Ventures I is a venture capital fund that was launched launched by responsAbility Social Investments AG of Switzerland in 2011. The fund is a limited partnership that holds a portfolio of companies aiming to serve poor people in the areas of energy, agriculture and information and communications technology (ICT). As of January 2011, the fund has raised USD 15 million plus USD 2.3 million for its related technical assistance facility.

About responsAbility: Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

About Unitus Capital: An affiliate of Unitus Labs, a US-based nonprofit, Unitus Capital is a financial advisory firm that specializes in arranging capital for microfinance institutions (MFIs) and other enterprises that aim to benefit poor people. Based in Bangalore, India, Unitus Capital offers financial advisory and capital markets services to clients in Asia. Between 2004 and 2010, Unitus Capital reports having arranged USD 25 million in debt capital for microfinance institutions (MFIs).

Sources and Resources:

[1] Electronic Network Cash Tellers, Inc. Press Release supplied to MicroCapital: “Electronic Network Cash Tellers, Inc. has raised USD 2.56mn equity capital from funds managed by Incofin Investment Management and responsAbility

MicroCapital Universe Profile for Unitus Capital: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Uni…

MicroCapital Universe Profile for Electronic Network Cash Tellers, Inc (ENCASH): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ENC…

MicroCapital Universe Profile for Infofin Rural Impulse Fund II: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inc…

MicroCapital Universe Profile for responsAbility: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res…

MicroCapital Universe Profile for responsibility Ventures I: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res…

MicroCapital.org article, September 20, 2010, “MICROCAPITAL BRIEF: Microfinance Institution SeedFinance Corporation and Smart Communications Inc, Both of the Philippines, Partner to Provide Mobile Money Services through “Islands Activation Program” https://www.microcapital.org/microcapital-brief-microfinance-institution-…

MicroCapital.org article, February 13, 2012, “MICROCAPITAL BRIEF: Microcredit, Microinsurance Client Numbers Rising in the Philippines” https://www.microcapital.org/microcapital-brief-microcredit-microinsuranc…

Browse the MicroCapital Universe and add your entry to the wiki at:https://www.microcapital.org/microfinanceuniverse/

Similar Posts:

Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.