Ujjivan Financial Services, a Bangalore-based microfinance institution, has raised INR 500 million (USD 7.9 million) of debt capital from Oikocredit, a Dutch cooperative investment fund, for on-lending to microfinance clients in an effort to support economic development in poor Indian communities. The money was raised by issuing an unspecified number of listed, secured and redeemable non-convertible debentures (NCDs) to Oikocredit.
Since early 2013, Ujjivan has raised USD 10 million from the International Finance Corporation, the lending arm of the US-based World Bank Group, through external commercial borrowing (ECB), which is used in India to facilitate access to foreign money by Indian corporations.
As of June 30, 2012, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207 million, 1 million active borrowers, return on assets (ROA) of 3.36 percent and return on equity (ROE) of 11.79 percent. Ujjivan serves clients in 21 states across India and operates through 322 branches. As of 2012, Oikocredit reported total assets of EUR 723 million (USD 961 million) and 854 active investors, of which 598 were microfinance institutions (MFIs).
By Adrija Vaiciulionis, Research Associate
About Ujjivan Financial Services:
Ujjivan Financial Services is a microfinance institution (MFI) based in Bangalore, India, that offers loans and insurance products. It was founded in 2004 and focuses on low-income women in urban and semi-urban areas. Its products include business loans, educational loans, emergency loans and life insurance. As of June 30, 2012, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207.4million, return on assets (ROA) of 3.36 percent, return on equity (ROE) of 11.79 percent and 1 million active borrowers. Ujjivan does not accept deposits. Private Equity Investors in Ujjivan Financial Services include Unitus Equity Fund (UEF), a US-based private equity fund that invests in microfinance institutions (MFIs); Bellwether Microfinance Fund, an India-based microfinance investment vehicle (MIV); Michael and Susan Dell Foundation, a US-based non-profit organization; AW Holdings, an Indian financial services company; Sequoia Capital, a US-based venture capital firm; Lok Capital, a Mauritius-based venture capital fund; Elevar Equity, a global investor based in Bangalore; India Financial Inclusion Fund (IFIF), a microfinance equity fund; and Small Industrial Development Bank of India (SIDBI), a development bank in India that aims to aid micro-, small and medium-sized enterprises (MSMEs).
About Oikocredit:
Oikocredit is a Dutch cooperative investment fund comprised of church groups, cooperatives and individual investors. Established in 1975, it works in 70 countries, investing mainly in microfinance institutions (MFIs), as well as trade cooperatives, fair trade organizations and small and medium-sized enterprises (SMEs) in the developing world. As of 2012, Oikocredit reported total assets of EUR 723 million (USD 961 million) and 854 active investors, of which 598 were MFIs.
Sources and Additional Resources:
Gutka, Charmi, “Ujjivan Raises Funds From Oikocredit,”
http://www.dealcurry.com/20130911-Ujjivan-Raises-Funds-From-Oikocredit.htm
MicroCapital Article, August 8, 2013, “MICROCAPITAL BRIEF: Standard Chartered Bank (SCB) Loans $13m to Indian MFIs Janalakshmi Financial Services Private Limited, Ujjivan Financial Services Private Limited,”
https://www.microcapital.org/microcapital-brief-standard-chartered-bank-scb-loans-13m-to-indian-mfis-janalakshmi-financial-services-private-limited-ujjivan-financial-services-private-limited/
MicroCapital Article, November 5, 2012, “MICROCAPITAL BRIEF: Lack of Law and Order Causes Microfinance Institution (MFI) Ujjivan of India to Put Lending Operations on Hold in Parts of Bihar,”
https://www.microcapital.org/microcapital-brief-lack-of-law-and-order-causes-microfinance-institution-mfi-ujjivan-of-india-to-pull-out-of-state-of-bihar/
MicroCapital Universe: Ujjivan Financial Services
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ujjivan+Financial+Services
MicroCapital Universe: Oikocredit
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oikocredit
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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