MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $25m in Indian Equity Firm BanyanTree, Investor in SMEs

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, reportedly plans to invest up to USD 25 million in India-based private equity firm BanyanTree Capital Advisors Limited, and investor in small and medium-sized enterprises (SMEs) in India.This represents approximately 20 percent of BanyanTree’s capital target of USD 150 to 175 million for the whole operation. No timeline has been disclosed for the deal or the project in general [1].

Financial information on BanyanTree is not available. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects. Between 1957, when India became a member of IFC, and 2011 IFC has invested USD 7 and raised USD 2.1 billion from external sources. As of 2011, IFC has investment portfolio of USD 3.6 billion inIndia.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About BanyanTree Capital Advisors Limited: Established in 2008, BanyanTree is private equity firm based in Mumbai, India. BanyanTree’s investments include Axiom Cordages, Trimax Infrastructure and Services, GEI Industrial Systems and Kalpena Industries. Financial information on BanyanTree is not available.

Sources and Resources:

[1] VC Circle: “IFC May Invest up to $25M in Banyan Tree Capital’s Second Fund” by Madhav Chanchani. http://www.vccircle.com/500/news/ifc-may-invest-up-to-25m-in-banyantree-capital%E2%80%99s-second-fund

MicroCapital.org Article, February 18, 2012, “International Finance Corporation (IFC), Accion Support Swadhaar in Expanding Microfinance for Women in Urban India”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-accion-support-swadhaar-in-expanding-microfinance-for-women-in-urban-india/

MicroCapital.org Article, June 16, 2010, “International Finance Corporatoin to Acquire 20% Stake in India-Based Microfinance Institution Swadhaar Finserve (SFPL)”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-to-acquire-20-stake-in-india-based-microfinance-institution-swadhaar-finserve-spfl/

MicroCapital.org Article, January 19, 2012, “IFC Advising FINO in Effort to Extend Financial Services to $100m Indians over 3 Years”, https://www.microcapital.org/microcapital-brief-ifc-advising-fino-in-effort-to-extend-financial-services-to-100m-indians-over-3-years/

MicroCapital.org Story, December 20, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), India’s Microfinance Institutions Network (MFIN) Promote Reporting to Credit Information Bureau”

https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-indias-microfinance-institutions-network-mfin-promote-reporting-to-credit-information-bureau/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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