Source: Symbiotics
Read the original Press Release here.
HYDERABAD and GENEVA, October 13, 2008 – On 30 September 2008, BlueOrchard Private Equity closed its first equity investment in an Indian microfinance institution (MFI), by investing Rs. 25.00 crore (USD 5.3 million) and taking a minority stake in the fourth largest non-banking financial company of India, Asmitha Microfin Limited. BlueOrchard is thus strengthening its position in the Indian microfinance market.
Asmitha has continuously demonstrated strong high quality growth, while serving the lower income rural population. BlueOrchard’s investment will strengthen Asmitha’s capital base and enhance its borrowing capacity for a continued expansion of its microfinance lending.
Dr. Vidya Sravanthi, Chairperson and Managing Director of Asmitha, said, “it is a great moment for Asmitha, and we are pleased to partner with BlueOrchard, an institution that understands the vision and commitment of our company. We look forward to a challenging future of impacting the microfinance sector in India. While taking initiatives for future growth, Asmitha will continue in the pursuit of achieving highest standards both in operations and systems.”
BlueOrchard, who specializes in commercial asset management in microfinance, chose to partner with Asmitha Microfin Limited in order to support its development in the coming years. BlueOrchard is the first external strategic partner invited by the founders of Asmitha Microfin. The company is presently serving 850,000 clients in thirteen Indian states and has ambitious expansion strategies.
BlueOrchard Private Equity’s Indian strategy is aligned with the fund’s overall objectives: to support MFIs’ leaders in their plans for expansion at national and regional levels through organic growth and acquisition strategies. Consequently, BlueOrchard will invest in promising emerging companies complementing other portfolio investments through additional geographic coverage or different client segments. An additional fund of funds approach further consolidates local presence, market understanding, local co-investment and partnership opportunities.
“We are very proud to have been invited by Asmitha Microfin Ltd. promoters as their first key external stakeholder. We intend to support Asmitha’s growth ambitions both financially and strategically, always keeping in mind the necessary dual returns – social and financial – intrinsic to the very success of microfinance” said Jean-Philippe de Schrevel, CEO of the Private Equity arm of BlueOrchard.
BlueOrchard launched a private equity fund at the end of 2007. With the aim of forging long-term partnerships with MFIs world-wide, the Swiss-based advisory company acquires minority stakes in the MFIs’ capital. It assumes an active governance role within the MFIs by sharing international experience, information, networks, knowledge and by actively participating in the decision-process at board level. Through this approach, BlueOrchard strives to achieve strong tangible social returns along with market economic returns.
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