MICROCAPITAL BRIEF: India’s IntelleGrow Completes Second Round of Financing, Raising $4.6m from Omidyar Network, Michael and Susan Dell Foundation

IntelleGrow, an India-based lender to small and medium-sized enterprises (SMEs), recently announced that it raised INR 250 million (USD 4.1 million) from Omidyar Network, a US-based social investment firm, and INR 30 million (USD 500,000) from the Michael and Susan Dell Foundation, a US-based nonprofit institution, in return for stakes in the company of undisclosed size. IntelleGrow intends to use the funds to extend loans to approximately 250 enterprises that have been operating for at least 12 months and have revenues of under INR 500 million (USD 8.1 million).

IntelleGrow is a nonbank financial company (NBFC) that was founded in 2012 by Indian consultancy firm Intellecap Capital Advisory Services with support from Shell Foundation, a UK-based charity founded by energy firm Royal Dutch Shell to promote social investment. Since its inception, IntelleGrow has disbursed approximately 60 loans totaling INR 600 million (USD 9.8 million) to SMEs operating in the energy, agriculture supply chain, sanitation, healthcare, education and financial inclusion sectors. As of December 2012, Omidyar Network reported total assets of USD 255 million. As of the same time period, Michael and Susan Dell Foundation reported total assets of USD 804 million.

By A’kos Szebeni, Research Associate

About IntelleGrow

IntelleGrow is a nonbank financial company (NBFC) based in the city of Mumbai, India. It was founded in 2012 by Indian consultancy firm Intellecap Capital Advisory Services with support from Shell Foundation, a UK-based charity promoting social investment that was founded by energy firm Royal Dutch Shell. IntelleGrow offers debt financing, technical assistance and training to rapidly-growing, early stage, small and medium-sized enterprises (SMEs) that have a track record of at least 12 months of operations and revenues less than INR 500 million (USD 8.1 million). Since its inception, IntelleGrow has disbursed approximately 60 loans totaling INR 600 million (USD 9.8 million) targeting SMEs operating in the energy, agriculture supply chain, sanitation, healthcare, education and financial inclusion sectors.

About Omidyar Network

Founded in the US in 2004, Omidyar Network is an investment firm that provides investments and grants to “socially responsible” organizations in the areas of microfinance, entrepreneurship, property rights, social media, marketplaces and government transparency. Omidyar invests in organizations that are aligned with its goals and “have potential for large-scale impact, have proven leadership, and exemplify innovation.” As of December 2012, Omidyar Network reported total assets of USD 255 million.

About Michael and Susan Dell Foundation

The US-based nonprofit Michael & Susan Dell Foundation was established in 1999 to provide grants to organizations that focus on education, childhood health and family economic stability. The foundation has committed approximately USD 700 million to nonprofit organizations working in communities in the United States, South Africa and India. As of December 2012, the foundation reported total assets of USD 804 million.

Sources and Additional Resources:

[1] Information provided to MicroCapital by Intellecap, an Indian consultancy firm and founder of IntelleGrow, March 2014

MicroCapital, March 4, 2014, “India-based Elevar Seeks to Raise $75m for Third Impact-Investing Private Equity Fund, Receives Commitment from Omidyar Network,”
https://www.microcapital.org/microcapital-brief-india-based-elevar-seeks-to-raise-75m-for-third-impact-investing-private-equity-fund-receives-commitment-from-omidyar-network/

MicroCapital, January 29, 2014, “Sankalp Forum to Host “Sankalp Unconvention Summit 2014” on Social Enterprise and Investment, April 9 – 11, 2014, Mumbai, India,” https://www.microcapital.org/microfinance-event-sankalp-forum-to-host-sankalp-unconvention-summit-2014-on-social-enterprise-and-investment-april-9-11-2014-mumbai-india/

MicroCapital, October 9, 2013, “Micro Housing Finance Corporation (MHFC) Raises $5.6m in Equity from Michael and Susan Dell Foundation, India Financial Inclusion Fund, Unilazer Ventures,”
https://www.microcapital.org/microcapital-brief-micro-housing-finance-corporation-mhfc-raises-5-6m-in-equity-from-michael-and-susan-dell-foundation-india-financial-inclusion-fund-unilazer-ventures/

MicroCapital, October 8, 2012, “Intellecap’s IntelleCash Microfinance Network Purchases 56% Stake in Arohan Financial Services of India,”
https://www.microcapital.org/microcapital-brief-intellecaps-intellecash-microfinance-network-purchases-56-stake-in-arohan-financial-services-of-india/

MicroCapital, September 6, 2012, “Bellwether Microfinance Fund, Michael & Susan Dell Foundation Sell Shares in Ujjivan of India to Lok Capital
of Mauritius, Undisclosed Social Investor,”
https://www.microcapital.org/microcapital-brief-bellwether-microfinance-fund-michael-susan-dell-foundation-sell-shares-in-ujjivan-of-india-to-lok-capital-of-mauritius-undisclosed-social-investor/

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

MicroCapital Universe Profile: Omidyar Network
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Omidyar+Network

MicroCapital Universe Profile: Michael and Susan Dell Foundation
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Michael+and+Susan+Dell+Foundation

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https://www.microcapital.org/products-page/.

 

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