MICROCAPITAL BRIEF: Investor in Microfinance, Education, Health, Infrastructure, Matrix Partners India Raises $300m

Matrix Partners India, the Indian subsidiary of US-based private equity firm Matrix Partners, recently announced that it raised USD 300 million for its second fund. With the closing of this fund, Matrix Partners India currently has approximately USD 677 million in assets under management. The firm invests as much as USD 30 million per company in sectors such as online services, education, financial services, healthcare and infrastructure services. Its portfolio is composed of 16 companies primarily targeting the Indian market including Muthoot Finance Limited, a non-banking finance company specializing in loans secured by gold jewelry, and Bhartiya Samruddhi Finance Limited, a microfinance institution (MFI).

As of September 30, 2010, Muthoot Fincorp reports paid-up capital of INR 600 million (USD 13.5 million). According to the Microfinance Information Exchange (MIX), BSFL reported total assets of 406 million, a gross loan portfolio of USD 362 million and 1.72 million active borrowers as of December 31, 2010.

By Jacqueline Foelster, Research Associate

About Matrix Partners India: Matrix Partners India is the Indian subsidiary of US-based private equity firm Matrix Partners. With approximately INR 30 billion (USD 677 million) in assets under management, Matrix Partners India invests in companies targeting the Indian domestic market with a “sector-independent” investment strategy. The firm invests up to INR 1.33 billion (USD 30 million) in each company depending on its stage of development. Matrix Partners has a global network of funds investing in the US, China and India.

About Matrix Partners: Established in 1977, Matrix Partners is a US-based venture capital firm with a principal investment focus in the technology sector. The firm has USD 650 million in assets under management in China and USD 677 million in India.

About Muthoot Finance Limited: Established in Kochi, India, in 1887, Muthoot Finance Limited (Muthoot Fincorp) is a gold financing company that provides personal and business loans secured by gold jewelry. The company also offers collection services and money transfer services as sub-agents of various registered money transfer agencies. As of September 30, 2010, Muthoot Fincorp reports paid-up capital of INR 600 million (USD 13.5 million).

About Bhartiya Samruddhi Finance Limited: Bhartiya Samruddhi Finance Limited (BSFL) is a regulated non-banking finance company (NBFC) based in Hyderabad, India, that was founded in 1997. It is part of the BASIX Group, which provides financial services, agricultural/business development services and institutional development services to rural poor households. According to the Microfinance Information Exchange (MIX), BSFL reported total assets of 406 million, a gross loan portfolio of USD 362 million and 1.72 million active borrowers as of December 31, 2010.

Source and Additional Resources:

[1] The Wall Street Journal, April 29, 2011, “Matrix Partners India Raises $300 Million”, http://online.wsj.com/article/SB10001424052748703655404576293850945858360.html?mod=googlenews_wsj

MicroCapital.org Brief, April 7, 2010, “Investment Firms Matrix Partners in India, Hivos-Triodos Fonds and Lok Capital LLC Invest $26.5m in Indian BASIX Microfinance Institution Bhartiya Samruddhi Finance Limited (BSFL)”, https://www.microcapital.org/microcapital-brief-investment-firms-matrix-partners-india-hivos-triodos-fonds-and-lok-capital-llc-invest-265m-in-indian-basix-microfinance-institution-bhartiya-samruddhi-finance-limited-bsfl/

MicroCapital Universe Profile: Matrix Partners India, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Matrix+Partners+India

MicroCapital Universe Profile: Matrix Partners, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Matrix+Partners

MicroCapital Universe Profile: Muthoot Finance Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Muthoot+Finance+Limited

MicroCapital Universe Profile: Bhartiya Samruddhi Finance Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bhartiya+Samruddhi+Finance+Ltd+%28BSFL%29

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

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