MICROCAPITAL BRIEF: Aavishkaar Goodwell, Asia Pragati Invest $3.4m in Swarna Pragati Housing Microfinance in India

Aavishkaar Goodwell, an Indian-Dutch joint venture that invests in development projects, and Asia Pragati, an India-based non-banking financial company (NBFC) owned by Hong Kong-based Pacific Alliance Group (PAG), reportedly have invested a total of INR 210 million (USD 3.4 million) in Swarna Pragati Housing Microfinance, an Indian microfinance institution (MFI) that partners with local MFIs to provide housing loans in the country [1]. Swarna Pragati reportedly plans to use the new investment to fund loans to 100,000 rural borrowers by 2018. Although details of the connection between Asia Pragati and Swarna Pragati Housing Microfinance is not available, they do share the same business address.

Aavishkaar Goodwell reported a gross loan portfolio of USD 157 million as of December 2012. Financial information is not available for Swarna Pragati or Asia Pragati.

By Megan McGowan, Research Associate

About Swarna Pragati:

Swarna Pragati Housing Microfinance Limited is an Indian housing finance company that was established in 2011. Based in the Indian capital of New Delhi, Swarna Pragati is headed by A Ramesh Kumar, a former chairman of the National Bank for Agriculture and Rural Development’s (NABARD’s) Committee on Rural Habitat. Swarna Pragati’s loans generally range from USD 710 to USD 1,420, with an average term of 36 to 48 months. Swarna Pragati has 3,000 borrowers as of December 2011. The company does not report financial data to the US-based nonprofit Microfinance Information Exchange and financial information is otherwise unavailable.

About Aavishkaar Goodwell:

Aavishkaar Goodwell is an Indian-Dutch joint venture that invests in development project and holds a loan portfolio of USD 157 million as of December 2012. Aavishkaar Goodwell’s portfolio includes investments in agriculture, education, energy, handicrafts, health, water and sanitation, technology, microfinance and financial inclusion. The Dutch microfinance private equity company Goodwell Microfinance Development Company is the leading investor in Aavishkaar Goodwell, along with development finance institutions and commercial banks that include the Netherlands Development Finance Company (FMO in Dutch), the World Bank’s International Finance Corporation (IFC) and Germany’s Deutsche Bank.

Sources and Additional Resources:

[1] VC Circle: “Aavishkaar Invests in Housing Microfinance Player Swarna Pragati,” October 3, 2013, http://www.vccircle.com/news/finance/2013/10/03/aavishkaar-invests-housing-microfinance-player-swarna-pragati

[2] Asian Venture Capital Journal: “Aavishkaar Backs Indian ATM Outsourcing Company EPS,” August 21, 2013, http://www.avcj.com/avcj/news/2290114/aavishkaar-backs-indian-atm-outsourcing-company-eps

MicroCapital.org Article, “MICROCAPITAL BRIEF: Grameen Koota of India Receives $9.8m in Equity from Incofin, Microventures, Aavishkaar Goodwell, Creation Investments; $4m in Debt Funding from Deutsche Bank Microfinance Fund,” March 14, 2013, https://www.microcapital.org/microcapital-brief-grameen-koota-of-india-receives-9-8m-in-equity-from-incofin-microventures-aavishkaar-goodwell-creation-investments-4m-in-debt-funding-from-deutsche-bank-microfinance-fund/

MicroCapital Article, “MICROCAPITAL BRIEF: Indian Microfinance Institution Utkarsh Raises $5m in Equity from Norwegian Microfinance Initiative, Aavishkaar Goodwell, International Finance Corporation,” October 3, 2011, https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-utkarsh-raises-5m-in-equity-from-norwegian-microfinance-initiative-aavishkaar-goodwell-international-financial-corporation/

MicroCapital.org Article, ”MICROCAPITAL BRIEF: Swarna Pragati Housing Microfinance Launches Micro-Mortgage Product in Maharashtra, India”, March 21, 2011,? https://www.microcapital.org/microcapital-brief-swarna-pragati-housing-microfinance-accion-invest-4-5m-in-saija-equity-in-finance-of-india/

MicroCapital Universe Profile: Swarna Pragati, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Swarna+Pragati+Housing+Microfinance+Limited

MicroCapital Universe Profile: Aavishkaar Goodwell, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aavishkaar+Goodwell+India+Microfinance+Development+Company+Ltd

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