MICROCAPITAL BRIEF: Annapurna Microfinance of India Raises $5m in Series B Financing from Belgian Investment Company for Developing Countries (BIO), Incofin

The Belgian Investment Company for Developing Countries, a public-private partnership established by the government of Belgium and known by the Dutch acronym BIO, has led a Series-B investment of INR 300 million (USD 5 million) with participation of undisclosed amount from Rural Impulse Fund II, a microfinance investment vehicle managed by Belgium’s Incofin Investment Management, in Indian microfinance institution (MFI) Annapurna Microfinance Private Limited. Series-B investing refers to the second round of financing for a business by private investors. Annapurna has not revealed what it intends to do with the funds.

As of 2014, Annapurna had 53 branches, 225,000 clients and a loan book of INR 1.4 billion (USD 24 million). BIO has invested in approximately 90 private sector projects in approximately 60 countries. As of 2012, BIO reports total assets of EUR 610 million (USD 808 million). As of 2013, Incofin finances and supports nine facilities with total outstanding investments of USD 500 million in approximately 40 countries; it has branch offices in Cambodia, Columbia, Kenya in addition to an advisory team in India. As of 2013, Rural Impulse Fund II has outstanding investments of EUR 58 million (USD 74.3 million) and a fund size of EUR 120 million (USD 173 million).

By Meraj Husain, Research Associate

About Annapurna Microfinance Private Limited

Headquartered in the Indian city of Bhubaneswar, Annapurna Microfinance Private Limited is a for-profit microfinance company that is organized as a non-banking financial company. As of 2014, Annapurna had 53 branches, 225,000 clients and a loan book of INR 1.4 billion (USD 24 million). It was created in 1988 when the People’s Forum, a nonprofit development organization, decided to spin off the microfinance portion of its business. This institution does not accept deposits.

About Belgian Investment Company for Developing Countries (BIO)

The Belgian Investment Company for Developing Countries, also known by the Dutch acronym BIO, was established in 2001 by the Belgian government to promote the creation of a strong private sector in developing countries in an effort to enable them to achieve prosperity through sustainable development. BIO has invested in approximately 90 private sector projects and is present in approximately 60 countries. As of 2012, BIO reports total assets of EUR 610 million (USD 808 million). The Belgian government committed to allocating EUR 105 million (USD 136 million) to BIO in 2011.

About Incofin Investment Management

Incofin Investment Management is a private Belgian company that develops and manages funds that invest in MFIs in developing countries. As of 2013, Incofin finances and supports nine facilities with total outstanding investments of USD 500 million in approximately 40 countries and has branch offices in Cambodia, Columbia, Kenya in addition to an advisory team in India.

About Rural Impulse Fund (RIFs I and II)

The Incofin Rural Impulse Funds (RIF) were launched by Incofin Investment Management to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The two funds include Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns and villages. The funds invest primarily through loans, though they make equity investments and guarantees as well. As of 2013, Rural Impulse Fund I has outstanding investments of EUR 27.8 million (USD 35.6 million) and a fund size of EUR 30 million (USD 38 million), while Rural Impulse Fund II has outstanding investments of EUR 58 million (USD 74.3 million) and a fund size of EUR 120 million (USD 173 million).

Sources and Additional Resources

[1] Information provided to MicroCapital by Incofin Investment Management, March 2014

MicroCapital, December 26, 2013, “Incofin Investment Management Seeking to Raise $200m for “agRIF” Fund for Small-Scale Agriculture,” https://www.microcapital.org/microcapital-brief-incofin-investment-management-seeking-to-raise-200m-for-agrif-fund-for-small-scale-agriculture/

MicroCapital, November 28, 2012, “Belgian Investment Company for Developing Countries (BIO) to Loan $1.5m to Centro de Investigacion y Desarrollo Regional Cidre of Bolivia,” https://www.microcapital.org/microcapital-brief-belgian-investment-company-for-developing-countries-bio-to-loan-1-5m-to-centro-de-investigacion-y-desarrollo-regional-cidre-of-bolivia/

MicroCapital, October 6, 2012, “Belgian Investment Company for Developing Countries (BIO) Disburses Grant to Banco Solidario of Ecuador for Financial Education Complimenting $8m Loan,” https://www.microcapital.org/microcapital-brief-belgian-investment-company-for-developing-countries-bio-disburses-grant-to-banco-solidario-of-ecuador-for-financial-education-complimenting-8m-loan/

MicroCapital, July 13, 2012, “Incofin Investment Management Invests $2.4m in Equity in Indian Annapurna Microfinance,” https://www.microcapital.org/incofin-investment-management-invests-2-4m-in-equity-in-indian-annapurna-microfinance/

MicroCapital Universe Profile: Annapurna Microfinance https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=%22Annapurna+Microfinance+Private+Limited+%28AMPL%29%29

MicroCapital Universe Profile: Belgian Investment Company for Developing Countries (BIO)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belgian+Investment+Company+for+Developing+Countries+%28BIO%29

MicroCapital Universe Profile: Incofin Investment Management https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs I and II) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

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