by Ryan Benson -

MICROCAPITAL STORY: Indian SKS Microfinance Plans to Raise $30m in Equity; Possible Future IPO

To finance its ambitious expansion plans, for-profit microlender SKS Microfinance has announced it plans to raise RUP 1.3 billion (USD 30.3 million) in equity capital through private investors, hoping to increase its equity base from roughly USD 50 to 80 million. SKS’ management plans to use the new funds to double its current customer base of 500,000 over the next two years. To meet its equity target, SKS added that it may induct a new investor onto its balance sheet.

by Stephen Son -

MICROCAPITAL STORY: Commercial Bank Banco de Crédito del Perú to Lend $1.2m to Microfinance Institution Pro Mujer Peru

Banco de Crédito del Perú will make a USD 1.2 million-equivalent local-currency loan to microfinance institution (MFI) Pro Mujer Peru, according to a statement by the international non-profit Grameen Foundation, a major backer of the transaction.

by Ryan Benson -

MICROCAPITAL STORY: For-Profit Equitas Microfinance to Raise $12.5m via Private Equity

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.

by Anthony Busch -

MICROCAPITAL STORY: Reliance Capital Enters First Phase of Microfinance Initiative in India

As posted by MicroCapital on Thursday, Reliance Capital of India, a publicly-traded financial institution offering a wide range of services and reporting March 2007 total assets of USD 1.5 billion, announced a new microfinance initiative on March 3rd beginning with the financing of two microfinance institutions (MFIs) based in Gujarat state. As stated in the press release, MAS Financial Services Limited (MFSL) and Vardan Trust received the first checks and Reliance Capital plans to continue the first phase of the initiative in Maharashtra state before expanding nation-wide at an undetermined date. Mr. K. V. Srinivasan, the Deputy CEO of Reliance Consumer Finance—a division of Reliance Capital offering loans for a variety of products—expressed that the methodology of the initiative will be to lend to MFIs which will then on-lend to individuals, self help groups (SHGs), and other joint liability microfinance structures. SHGs are unions of individuals, usually connected by geographical location, which organize to take advantage of the financial services that can be utilized from their collective assets.

by Steven Craig -

MICROCAPITAL SPECIAL FEATURE: 2007 Equity Investments in Small and Medium Sized Microbanks, Part 3 of 3

December 10, MicroCapital.org featured Part 2 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Previously, detailed information was provided on institutions with less than USD 100 million in assets. Here, in Part 3, we provide detailed financial and outreach information on microbanks with total assets greater than USD 100 million and less than USD 200 million. The institutions are presented in ascending order based on asset size.

by Steven Craig -

MICROCAPITAL SPECIAL FEATURE: 2007 Equity Investments in Small and Medium Sized Microbanks, Part 2 of 3

On December 5, MicroCapital.org featured Part 1 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Here, in Part 2, we provide detailed financial and outreach information on microbank’s with total assets under USD 100 million. The institutions are presented in ascending order based on asset size.

by Elizabeth Nelson -

MICROCAPITAL STORY: Taking Stock of Global Microfinance Statistics on Global Assets and Customers

Data reported to the Microfinance Information eXchange (MIX, MIX Market) by microfinance institutions indicates that globally there are approximately USD 22.44 billion in total assets in MFIs* and roughly 48.5 million microfinance clients.** The MFIs listed on the MIX also reported over USD 23 billion in gross loan portfolio between 2004 and 2006.

by Steven Craig -

WHO’S WHO IN MICROFINANCE: The Dignity Fund, L.P.

The Dignity Fund, a private partnership founded in 2005, brings capital to the microfinance industry in an effort to advance the upward mobility of the poor. The Dignity Fund seeks to increase the number of poor households with access to credit, savings and other financial services by providing debt financing to microfinance institutions (MFIs).

by Elizabeth Nelson -

MICROCAPITAL STORY: DOEN Foundation Approves $200k Grant to Help Launch and the International Association of Microfinance Investors (IAMFI)

The DOEN Foundation, the Dutch charitable fund and co-founder of microfinance investment firm Triodos-Doen Foundation, will provide a USD 200,000 grant to aid the establishment of the International Association of Microfinance Investors (IAMFI), according to Program Manager of Financial Sector Development at DOEN Jeroen Loots. The IAMFI is an organization that will seek to increase investment in microfinance from the private sector by disseminating credible industry data, drawing responsible investors, establishing best practices, and exploring opportunities to influence public policy.

by Elizabeth Nelson -

MICROCAPITAL STORY: DOEN Foundation Approves $300k Grant to Microfinance Network Kiva Microfunds (Kiva.org)

The DOEN Foundation, an Amsterdam-based charitable organization which supports numerous microfinance and entrepreneurial projects, has approved a grant totaling USD 300,000 to Kiva Microfunds for further development of the organization, according to Jeroen Loots, Program Manager of Financial Sector Development at DOEN. Kiva is the first non-profit organization to allow microfinance institutions (MFIs) to raise interest-free capital directly from social investors via the Internet. Individual lenders can provide funding in increments as small as USD 25 and receive repayment of the principal at the end of the loan term, which typically runs between six and 12 months. Repayment rate on loans stands at 99.8 percent.

by Amy Rennison -

MICROFINANCE EVENT: Financial Research Associates to Host First Microfinance Conference for Institutional Investors

MICROFINANCE FOR THE INSTITUTIONAL INVESTOR; JANUARY 14-15, 2008; NEW YORK, USA

The event, hosted by Financial Research Associates, is designed to help institutional investors understand the world of microfinance and allow them to identify low-risk market-rate returns while alleviating poverty. The conference will review microfinance institutions and capital management in-depth and will cover specific topics such as microfinance rating methodology, securitization techniques and portfolio risk reduction strategies. There will be speakers and keynote presentations from some of the leading microfinance players.

by the MicroCapital Team -

MICROCAPITAL STORY: Indian Microfinance Industry to Expand Outreach, Products, and Services

The Economic Times, a division of the India Times, reports on the strength of the Indian microfinance industry, and its possible innovative role in the supply chain. Large companies like SHARE Microfin Limited, SKS, Basix and Spandana maintain vast customer networks. According to the MIX Market, the microfinance information clearinghouse, SHARE has 826,517 active borrowers, while SKS has 513,108. Basix reports 198,282 active borrowers, and Spandana, 916,261. Driven by the power of private equity investment, these companies hope to expand in the near future to over 5 million customers apiece. As reported by the Microcapital Monitor, in March of this year SKS received a private equity investment from Sequoia (a US-based private equity fund) and Unitus (a global microfinance accelerator) of USD 11.5 mn. To date, this had been the largest ever private equity investment in Indian microfinance. However, it was soon eclipsed by a USD 27 mn private investment to SHARE by Legatum (an international investment group) and Aavishkaar Goodwell (an India-based for-profit business development company). Although these insitutions aim to increase their reach in the interest of profit, this broad web of microloan consumers could be tapped for peddling insurance, money transfer, procurement and supply chain financing for agricultural and allied activities.

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by the MicroCapital Team -

eBay Enters Microfinance, Part 4 of 5: The Road to Oz, From a grant-making Foundation to an investing Network

Previous articles in the series available here: Part 1/5, Part 2/5, Part 3/5

The performance of the Omidyar Network to date reflects a stable of companies that does not denote a coherent strategy. Omidyar Network currently lists 63 organizations online in its investment portfolio over 4 different areas; access to finance; philanthropic markets; open innovation; and participatory media. Within ‘access to finance’ alone the network includes a plethora of organizations from Unitus, which aims to accelerate growth of MFI’s to Cell Bazaar which connects buyers and sellers through a mobile phone based marketplace. Ethos Water aims to increase awareness of the global water shortage, and World of Good brings ‘ethically sourced handcrafted goods’ to the US market.

Continue reading “eBay Enters Microfinance, Part 4 of 5: The Road to Oz, From a grant-making Foundation to an investing Network”

by the MicroCapital Team -

Sequoia Capital Leads USD 11.5mm Investment in SKS Microfinance based in India

Sequoia Capital, a private equity fund founded in 1972 and based in California, will lead an USD 11.5mm investment into SKS (Swayam Krishi Sangam) Microfinance, a microfinance institution (MFI) based in India. Other stakeholders in the investment include Unitus, a USD 23mm US equity fund established in 2000 to provide funding and consultancy to MFI’s.

Continue reading “Sequoia Capital Leads USD 11.5mm Investment in SKS Microfinance based in India”