LeapFrog Investments, a US-based private equity fund focusing on microinsurance activities, will invest USD 15 million in the Shriram Group, an India-based provider of financial services to low-income individuals, to help the organization expand its offering of microinsurance and savings products for up to 10 million clients. According to Dr Jim Roth, co-founder of LeapFrog Investments, the money will be used to “[improve] cover for millions of financially excluded clients and their families in India while also generating healthy financial returns.”
Shriram Capital, a subsidiary of the Shriram Group, is responsible for the company’s principal financial products including transport finance, consumer lending and insurance. As of 2011, Shriram Capital reported assets under management of approximately INR 400 billion (USD 8.65 billion). Unitus Capital, an India-based financial advisory firm, served as the sole investment advisor for the deal.
By Rohan Trivedi, Research Associate
About LeapFrog Investments:
LeapFrog Investments, which was founded in 2007 by Dr Andrew Kuper and Dr Jim Roth, is a for-profit private equity fund aimed at earning large returns by investing in and supporting microinsurance initiatives. At the time of its inception, LeapFrog raised USD 135 million from a range of public and private investors, including the European Investment Bank, the Omidyar Network, Dutch development bank FMO, ACCION International and US-based Calvert Investments. The LeapFrog team has also committed USD 1 million of their personal money to the fund. The fund focuses on ventures in Africa and Asia, with initial target countries including South Africa, Kenya, Ghana, India, Indonesia, Pakistan and the Philippines.
About the Shriram Group:
The Shriram Group is an Indian provider of financial and non-financial services to low-income clients. The Group’s principal financial product lines include transport finance, consumer lending and insurance, which are housed under Shiram Capital. In the area of non-financial services, the Shriram Group has made a number of alternative sector investments that include information technology, infrastructure and medical diagnostics. As of 2011, Shriram Capital reported assets under management of approximately INR 400 billion (USD 8.65 billion).
About Unitus Capital:
An affiliate of Unitus Labs, a US-based nonprofit organization, 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 Additional Resources:
[1] Press release submitted by to MicroCapital by Unitus Capital, September 2011.
MicroCapital.org story, June 3, 2011: “MICROCAPITAL BRIEF: LeapFrog Partners With Unitus Capital Looking to Invest $40m to Increase Microinsurance Penetration in India”, https://www.microcapital.org/microcapital-brief-leapfrog-partners-with-unitus-capital-looking-to-invest-40m-to-increase-microinsurance-penetration-in-india/
MicroCapital.org story, April 29, 2010: “MICROCAPITAL BRIEF: LeapFrog Investments Poised to Invest $30m to $37m in Microinsurance Projects in India”, https://www.microcapital.org/microcapital-brief-leapfrog-investments-poised-to-invest-30m-to-37m-in-microinsurance-projects-in-india/
MicroCapital Universe Profile: LeapFrog Investments, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments
MicroCapital Universe Profile: Shriram Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Shriram+Group
MicroCapital Universe Profile: Unitus Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unitus+Capital
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: AIA Commits $200m to LeapFrog Investments Seeking Positive Social, Environmental Impact
- MICROCAPITAL BRIEF: Verdant Capital Facilitates $2.5m in Lending for Enable Capital to Support SMEs Building Internet Infrastructure in South Africa
- MICROCAPITAL BRIEF: Annapurna Finance Borrowing $25m from responsAbility to Boost Renewable Energy, Energy-efficiency in India
- MICROCAPITAL BRIEF: FMO Committing $30m to South Asia Growth Fund III to Support Equity Placements in Businesses Reducing Environmental Impacts, Mainly in India
- MICROCAPITAL BRIEF: BIO Loans $15m to AMK Microfinance of Cambodia
