A new player to India’s microfinance space, Chennai-based Equitas has announced it will enlist the assistance of private equity firms to secure the organization’s second round of funding. Equitas hopes to raise USD 12.5 million from two private equity firms over a two-month period to establish additional branch offices in India’s southern region.
Founded in December 2007, Equitas is a commercial microfinance institution that has enjoyed considerable growth since its inception. In the first four months of operation, the firm opened 15 branch offices, served 25,000 predominately female clients and built a gross loan portfolio of USD 6.25 million. Additional financial data on Equitas is not available, as the fledgling organization has yet to formally release comprehensive financial information. Data provided herein was compiled from press reports.
According to a report by Sa-Dhan (p. 14), an association of community development financial institutions, a large majority (p.14) of microfinance institutions operating in India are nonprofit organizations that do not seek a return on their investment. The financial sustainability of Equitas evidences a recent trend in the emergence of commercialized microfinance institutions in India, as described in the report (p. 14).
By Ryan Benson, Research Assistant
Additional Resources:
Mix Market: India Country Profile
The Hindu: Interivew with Equitas’ CEO
Livemint: Story
Social Edge: Story
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