MICROCAPITAL BRIEF: Grameen Koota of India Looks to Expand into Housing Microfinance

Grameen Koota, a India-based microfinance division of Grameen Financial Services Private Limited (GFSPL), plans to expand into housing microfinance in areas of rural India that have limited microfinance institution (MFI) penetration. Grameen Koota is finalizing a business plan that may include setting up a specialized housing finance company to open up avenues for long-term institutional refinancing. Current backers of the project include Aavishkaar Goodwell India Microfinance Development Company Ltd, a for-profit Indian-Dutch joint venture; MV Microfin Pvt Ltd. (MicroVentures India), an MFI affiliate of the Italy-based MicroVentures Network; and Incofin, a Belgian company that develops and manages MFI investment funds in 39 countries.

According to the US-based nonprofit Microfinance Information Exchange (MIX), Grameen Koota reported total assets of USD 62.6 million, 313,610 active borrowers, return on assets (ROA) of -1.02 percent and return on equity (ROE) of -5.99 percent as of 2011.

By Jennifer Young, Research Associate

About Grameen Koota:
Grameen Koota, which was founded in 1999 as a division of India’s Grameen Financial Services Private Limited, is a microfinance institution (MFI) based in Bangalore, India. Grameen Koota was launched with funding from Grameen Trust, an India-based non-governmental organization that supports microfinance globally through funding, training and technical assistance. Grameen Koota provides credit to low-income households through 117 branches in the Indian states of Karnataka and Maharashtra. According to the US-based nonprofit Microfinance Information Exchange (MIX), Grameen Koota reported total assets of USD 62.6 million, 313,610 active borrowers, return on assets (ROA) of -1.02 percent and return on equity (ROE) of -5.99 percent as of 2011.

About Aavishkaar Goodwell India Microfinance Development Company Ltd.
Aavishkaar Goodwell is an Indian-Dutch joint venture that is looking to build a portfolio of USD 25 million in 30 to 40 microfinance start-ups and 8 to 10 growing microfinance institutions (MFIs). 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 including the Netherlands Development Finance Company (FMO in Dutch), the World Bank’s International Finance Corporation (IFC) and Germany’s Deutsche Bank. There is no reported data available for Aavishkaar Goodwell.

Sources and Additional Resources

Business Standard Story: “Grameen Koota Testing Waters To Foray into Housing Microfinance”
http://business-standard.com/india/news/grameen-koota-testing-waters-to-foray-into-housing-microfinance/187773/on

MicroCapital Story: “MICROCAPITAL BRIEF: Insurance Regulatory and Development Authority (IRDA) of India Proposes Shop Owners be Allowed to Sell Microinsurance,” August 6, 2012.
https://www.microcapital.org/microcapital-brief-insurance-regulatory-and-development-authority-irda-of-india-proposes-shop-owners-be-allowed-to-sell-microinsurance/

MicroCapital Story: “MICROCAPITAL BRIEF: Indian Microfinance Institution Grameen Koota Raises $5m from responsAbility through Nonconvertible Debentures,” June 22, 2012.
https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-grameen-koota-raises-5m-from-responsability-through-nonconvertible-debentures/

MicroCapital Story: “MICROCAPITAL BRIEF: Au Financiers to Establish Affordable Housing Finance Company in India,” February 26, 2012.
https://www.microcapital.org/microcapital-brief-au-financiers-to-establish-affordable-housing-finance-company-in-india/

MicroCapital Universe Profile: Grameen Koota
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Koota

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

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

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