Spain-based Gawa Capital recently disbursed EUR 6 million (USD 6.5 million) from the Huruma Fund, a public-private partnership also based in Spain, to purchase a minority stake of undisclosed size in Pahal Financial Services, a microfinance institution based in the city of Ahmedabad, India. Among the goals of the investment are
Tag: India
MICROCAPITAL BRIEF: New Flexibility for NBFC-MFIs in India Includes Lifting Interest Ceiling on Microfinance Loans
Non-banking financial company-microfinance institutions (NBFC-MFIs) in India may set their own interest rates freely now that the Reserve Bank of India (RBI) has repealed the ceilings that previously applied to microlending rates. In the interest of client protection, however, lenders may no longer charge a penalty fee in cases of prepayment, and client repayments may not exceed half of household income. Meanwhile,
MICROFINANCE PAPER WRAP-UP: “Women’s Agent Network – the Missing Link in India’s Financial Inclusion Story: A Supply-Side Perspective,” by Akhand Tiwari et al, Published by MicroSave
Based on a survey of 12 private-sector business correspondent network managers (BCNMs), the authors seek a supply-side perspective on the challenges and opportunities for expanding the reach of female business correspondents (BCs) in India. BCs are agents who contract with banks to offer banking services outside of bank branches. The authors find that women are underrepresented among BCs, but that “according to BCNMs, more female BC agents would improve the quality of the agent network.” One possible reason
MICROCAPITAL BRIEF: Nepal’s Gateway Payments Service, Manam Infotech, National Payments Corporation of India to Boost Digital Transactions in Nepal
Gateway Payments Service, one of 10 licensed payment system operators in Nepal; the National Payments Corporation of India (NPCI), which is owned by the government of India; and Manam Infotech, an Indian financial technology (fintech) firm are partnering to rollout NPCI’s Unified Payments Interface (UPI) in Nepal. Among UPI’s functions is to allow users to control multiple bank accounts from a single mobile app, facilitating payments to merchants as well as among individuals. The rollout in Nepal will allow transactions within the country at first and may be extended to execute cross-border payments in the future. NPCI is participating in the effort through
MICROCAPITAL BRIEF: IREDA Loans $4m to Husk Power Systems for 140 Solar Microgrids in Rural India
The India Renewable Energy Development Agency (IREDA), a government entity, recently loaned INR 310 million (USD 4.2 million) to Husk Power Systems, an India-based supplier of small-scale electricity generation and distribution networks in rural India and Africa, to construct 140 solar microgrids in the Indian states of Bihar and Uttar Pradesh. IREDA is
MICROFINANCE EVENT: Microfinance & NBFCs Exhibition (MINE) cum Conference; March 11, 2022; Chennai, India
This conference will include speakers from the government and the private sector on topics such as the effects of COVID-19 on microlending and the ways new forms of technology can boost the field’s “overall reach and profitability.” Sample topics include the
MICROCAPITAL BRIEF: ResponsAbility Lends $18m to Fintech U Gro Capital for MSME Funding in India
ResponsAbility Investments, a Swiss firm in the process of being acquired by UK-based M&G, recently facilitated INR 1.4 billion (USD 18 million) in borrowing by U Gro Capital, an Indian financial technology (fintech) platform, to increase its funding of micro-, small and medium-sized enterprises (MSMEs). The debt package comprises INR 1.1 billion (USD 14 million) in nonconvertible debentures (NCDs) with the remainder in the form of an external commercial borrowing transaction. The latter is
MICROCAPITAL BRIEF: Study-abroad Firm Leverage Edu Facilitating Student Access to Finance, Banking Services, Cross-border Remittances
Leverage Edu, which offers platforms for students in India looking to study in other countries, recently launched Leverage Finance, a unit facilitating loans to pay for tuition, cross-border remittances, and remote opening of bank accounts in countries to which students will travel for their education. During the pilot phase of the service, Leverage Finance customers accessed loans totaling INR 750 million (USD 10 million) and opened approximately 500 accounts at banks in Canada and the UK. Going forward, the firm plans to:
MICROCAPITAL BRIEF: Annapurna Raises $35m from Accion, Encourage Capital, Oikocredit to Support Green Microfinance, Digitalisation
Annapurna Finance, a microfinance institution (MFI) based in the Indian state of Odisha, recently raised INR 193 billion (USD 35 million) from US-based NGO Accion, US-based impact investor Encourage Capital and Dutch cooperative investor Oikocredit. The funding is to be used to boost the digitalisation of Annapurna’s operations and for developing
MICROCAPITAL BRIEF: Northern Arc Capital to Provide Research, Modeling, Reporting Services to Nasira, FMO Program that Guarantees MSME Lending to Youth, Women, Migrants
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, recently finalized an agreement with Northern Arc Capital, an Indian financial firm, to support Nasira, a risk-sharing program through which FMO encourages retail financial institutions to lend to entrepreneurs in Africa and parts of Asia. In particular, Nasira guarantees lending to micro-, small and medium-sized enterprises whose owners fall into one or more of the following
MICROCAPITAL BRIEF: HDFC Bank to Lend $100m to Micro-, Small, Medium-sized Enterprises (MSMEs) in India – Half Led by Women – with Support from DFC, Mastercard, USAID
HDFC Bank, an affiliate of India’s Housing Development Finance Corporation, recently agreed to lend USD 100 million to micro-, small and medium-sized enterprises (MSMEs) in India to support their usage of digital payments, including to adjust to the COVID-19 pandemic. Half of the credit facility is
MICROCAPITAL BRIEF: Creation, Norwest, IIFL Place $200m in Equity in Vastu Platform Offering Housing Loans via Alternative Credit Scoring in India
Two US-based firms, Creation Investments and Norwest Venture Partners, recently co-led a Series C financing round of USD 200 million for Vastu Housing Finance of India. Each investor committed USD 75 million to Vastu, with India’s IIFL Finance investing the remaining USD 50 million. Vastu plans to use the financing to
MICROCAPITAL BRIEF: CredAvenue Raises $90m in Equity Round Led by Sequoia for Platform Connecting Lenders, Borrowers in India
CredAvenue, a service that facilitates transactions between lenders and institutional borrowers in India, recently raised USD 90 million in Series A funding. Sequoia Capital India led the round of funding, with participation from
MICROCAPITAL BRIEF: Creation Investments Leads $30m Debt, Equity Funding Round for ReshaMandi, B2B App for Silk Farms, Manufacturers, Retailers in India
ReshaMandi, business-to-business (B2B) marketplace app serving 35,000 farms, manufacturing businesses and retailers active in the silk industry, recently raised USD 30 million in debt and equity. Creation Investments, a US-based alternative investment manager,
MICROCAPITAL BRIEF: SuperZop, Agri-commerce Platform in India, Nets $4m in Equity from Incofin, 1st-time Investor in Agricultural Technology
Incofin Investment Management, a Belgium-based investor in financial inclusion and agriculture in developing countries, recently agreed to invest USD 4 million from its India Progress Fund (IPF) in SuperZop, whose app helps “small retailers and restaurants buy staples directly from farmers and food processors.” Among the app’s functions is to use artificial intelligence to analyze the quality of grains
MICROCAPITAL BRIEF: Belstar Microfinance Raises $48m in Equity to Boost Service to Women, Low-income Households in India
Belstar Microfinance, a non-banking financial company controlled by India-based Muthoot Finance, recently raised INR 3.5 billion (USD 47.6 million) in equity. An unspecified portion of the funds are from Affirma Capital, a Singapore-based private equity firm that is a first-time investor in Belstar. The remainder of the new equity comes from
MICROCAPITAL BRIEF: Visa Testing Offline Payment System in India to Expand Financial Inclusion in Rural Areas with Poor Internet Connectivity
Visa Incorporated, a US-based payments company, recently announced it is expanding its pilot-testing of a system to enable payments in areas without a stable internet connection. Having completed a successful trial in five villages in the Indian state of Karnataka, Visa is partnering with
MICROCAPITAL BRIEF: In India, MFIs, State Government Agree on Assam Microfinance Relief, Incentive Scheme for Women Borrowers Struggling with COVID-19 Impacts
The government of the Indian state of Assam recently announced it has reached an agreement with 38 microfinance institutions (MFIs), many of which are members of the self-regulating Microfinance Institutions Network (MFIN), to launch the Assam Microfinance Incentive and Relief Scheme (AMFIRS). For those who have been late repaying their microloans, the “relief under the scheme shall be extended to…