LeapFrog Investments, a US-based private equity fund focusing on microinsurance activities, is reportedly looking for opportunities to deploy up to USD 40 million in India. LeapFrog has employed Unitus Capital, an India-based financial advisory firm, to investigate investment opportunities. Abhijit Ray, a director at Unitus Capital, reportedly has said that LeapFrog is considering investments in microinsurance companies as well as larger insurers that are trying to develop microinsurance products [1]. MicroCapital reported in April 2010 that LeapFrog was ready to “commit USD 30 to 37 million to microinsurance products in India” [2].
In describing the type of investments that his firm is investigating, Jim Roth, co-founder and partner at LeapFrog Investments, recently referred to an unnamed Indian microinsurance provider, based in the state of Gujarat, that sells weather index insurance to cover specific crops in the region [1]. Weather index insurance is a product that covers farmers against presumed crop failure based on measurable factors such as if rainfall is below a predetermined threshold. Last year, Mr Roth reportedly said that LeapFrog was looking at partnerships with third-party distributors, commercial insurance companies, banks and development institutions [2].
LeapFrog Investments runs a USD 135 million fund that reaches approximately 135 million people.
By Rohan Trivedi, Research Associate
About LeapFrog Investments:
LeapFrog Investments was founded in 2007 by Dr Andrew Kuper. It is a for-profit, global private equity fund aimed at earning large returns by investing in and supporting microinsurance initiatives. As of May 2011, LeapFrog has raised USD 135 million from a range of public and private investors, including the European Investment Bank, the US-based Omidyar Network, Dutch development bank FMO and US-based nonprofits ACCION International and Calvert. The LeapFrog team has also committed USD 1 million of their personal money to the fund. The fund focuses on ventures in Africa and Asia, with initial target countries including South Africa, Kenya, Ghana, India, Indonesia, Pakistan and the Philippines.
About Unitus Capital:
An affiliate of Unitus Inc., a nonprofit with operations in India and the US, Unitus Capital is a financial advisory firm that specializes in arranging capital for microfinance institutions (MFIs) and other enterprises that aim to benefit the poor. Based in Bangalore, India, Unitus Capital offers financial advisory and capital markets services to clients in Asia. Between 2004 and 2010, Unitus Capital reports having arranged USD 25 million in debt capital for microfinance institutions (MFIs).
Sources and Additional Resources:
[1] The Wall Street Journal: “LeapFrog to Invest up to $40 Million in India”, http://online.wsj.com/article/SB10001424052702303745304576357152149598770.html
[2] MicroCapital.org story, April 29, 2010: “MICROCAPITAL BRIEF: LeapFrog Investments Poised to Invest $30m to $37m in Microinsurance Projects in India”, https://www.microcapital.org/microcapital-brief-leapfrog-investments-poised-to-invest-30m-to-37m-in-microinsurance-projects-in-india/
MicroCapital.org story, April 15, 2011: “MICROCAPITAL BRIEF: LeapFrog Makes $13.5m Equity Investment in Apollo Investments for Microinsurance in Kenya, Uganda, Tanzania”, https://www.microcapital.org/microcapital-brief-leapfrog-makes-13-5m-equity-investment-in-apollo-investments-for-microinsurance-in-kenya-uganda-tanzania/
MicroCapital Universe Profile: LeapFrog Investments: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments
MicroCapital Universe Profile: Unitus Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unitus+Capital
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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