Grameen Capital India, a Mumbai-based, socially-oriented advisory firm, recently announced that BlueOrchard, a Switzerland-based microfinance investment company, made an equity investment of INR 45 million (USD 1.01 million) in Svasti Microfinance Private Limited (Svasti), an Indian microfinance institution (MFI).  Grameen Capital India acted as exclusive advisor to Svasti on its second round of equity funding. As of May 2011, Svasti manages a loan portfolio of INR 50.4 million (USD 1.13 million) and has approximately 8,500 borrowers. BlueOrchard had approximately USD 1.1 billion under management as of April 2011.

By Jacqueline Foelster, Research Associate

About Svasti Microfinance Private Limited (Svasti): Established in 2008, Svasti is a non-bank financial company that offers loan products to low-income urban entrepreneurs in Mumbai. As of May 2011, Svasti manages a loan portfolio of INR 50.4 million (USD 1.13 million) and has approximately 8,500 borrowers.

About BlueOrchard: BlueOrchard is a Switzerland-based, commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance S.A. and invests in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments S.A. BlueOrchard had approximately USD 1.1 billion under management as of April 2011.

About Grameen Capital India: Grameen Capital India is a “social business” based in Mumbai that promotes microfinance as an asset class and aims to enable microfinance institutions (MFIs) to develop wider access to capital markets. It is a collaboration between Grameen Foundation USA, IFMR Trust and Citigroup. Its focus is on: “Developing access to capital markets, initially in India, through securitization and other appropriate financial vehicles; structuring and arranging credit enhancements/ first loss guarantees to support the investment grade rating of the senior securities… and advising MFIs on the standards of governance, accounting, reporting, and transparency necessary to satisfy commercial financing sources.” Financial information is unavailable for Grameen Capital India.

Source and Additional Resources:

[1] Grameen Capital, Press Release, May 9, 2011, “Blue Orchard Invests Rs.4.5 Crores in Svasti Microfinance”

MicroCapital Universe Profile: Svasti Microfinance Private Limited, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Svasti+Microfinance+Private+Limited

MicroCapital Universe Profile: BlueOrchard, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard

MicroCapital Universe Profile: Grameen Capital India, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Capital+India

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