MicroPlace, a US-based facilitator of investments in international microfinance and subsidiary of online auctioneer eBay, recently announced that it will no longer offer investment opportunities. Since 2007, MicroPlace had offered an online platform connecting retail investors with investment vehicles that invest in microfinance institutions (MFIs). All existing investments will continue to receive interest and principal payments until they mature or are redeemed. MicroPlace, a for-profit organization, cites its failure to scale operations for “widespread impact” as its reason for shutting down operations [1].
From 2007 until its closure in 2014, MicroPlace secured approximately USD 58 million in investment capital to help fund approximately 50 microfinance projects in 35 countries through six intermediaries. The number of MicroPlace investors and customers has not been specified.
By Meraj Husain, Research Associate
About MicroPlace
MicroPlace, a for-profit subsidiary of US-based auctioneer eBay, was launched in 2006. Until it stopped taking new investments in 2014, MicroPlace connected retail investors with microfinance investment vehicles through its online investment platform. During its active years, MicroPlace secured approximately USD 58 million in investment capital for approximately 50 microfinance projects in 35 countries through six intermediaries.
About eBay Foundation
The eBay Foundation is the charitable arm of eBay Inc., a US-based online marketplace. The foundation was established in 1998 and has since donated approximately 21 million to institutions around the world to support philanthropic efforts. As of year-end 2012, eBay Foundation reported total assets of USD 30 million. As of year-end 2013, eBay Inc. reported total assets of USD 41 billion.
Sources and Additional Resources
[1] MicroPlace: “The Future of MicroPlace,” https://www.microplace.com/
MicroCapital, September 19, 2012, “eBay, Grameen Foundations Partner to Launch Mobile Marketplace Transaction Platform to Increase Financial Inclusion in Indonesia,” https://www.microcapital.org/microcapital-brief-ebay-grameen-foundations-partner-to-launch-mobile-marketplace-transaction-platform-to-increase-financial-inclusion-in-indonesia/
MicroCapital, May 5, 2011, “17 Websites Now Allow Individuals to Commit as Little as USD 20 as Microfinance Loans,” https://www.microcapital.org/microcapital-brief-17-websites-now-allow-individuals-to-commit-as-little-as-usd-20-as-microfinance-loans/
MicroCapital, April 13, 2009, “MicroPlace Offers Online Microfinance Investment in Nicaraguan Credit Alternative Fund Issued by Working Capital for Community Needs with Interest Rate up to 6 percent,” https://www.microcapital.org/microcapital-story-microplace-offers-online-microfinance-investment-in-nicaraguan-credit-alternatives-fund-issued-by-working-capital-for-community-needs-with-interest-rates-up-to-6-percent/
MicroCapital Universe Profile: MicroPlace
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroPlace
MicroCapital Universe Profile: eBay Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=eBay+Foundation
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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