MICROCAPITAL BRIEF: MicroVentures Invests $13.5m in Equity in Microfinance Institution Grameen Koota of India

Indian non-banking financial company Grameen Financial Services Private Limited, which is also known as Grameen Koota, reportedly has received an equity investment of USD 13.5 million from Italy-based private equity firm MicroVentures. With this investment, MicroVenture has increased its total stake in Grameen Koota from 62 percent to 64.8 percent.

Grameen Financial Services Private Limited reported total assets of USD 175 million, a gross loan portfolio of USD 134 million and 504,000 active borrowers as of March 2014. The institution does not accept deposits. As of 2008, MicroVentures reported total fund assets of EUR 20 million (approximately USD 27.6 million). More recent financial information for the company is not available. MicroVentures invests in microfinance institutions (MFIs) through direct equity investments and hybrid instruments such as subordinated and convertible bonds or quasi-equity.

By Juan Blanco, Research Associate

About Grameen Financial Services Private Limited (GFSPL)

Grameen Financial Services Private Limited (GFSPL), popularly known as Grameen Koota, was founded in India in 1999 as a project of nongovernmental organization T Muniswamappa Trust and has since become an independent non-banking finance company (NBFC). GFSPL operates in the Indian states of Maharashtra, Karnataka and Tamil Nadu and offers products such as microloans, vocational training loans, workshops and access to educational centers. As of March 2014, GFSPL reported total assets of USD 175 million, a gross loan portfolio of USD 134 million and 504,000 active borrowers. The institution does not accept deposits.

About MicroVentures SpA

Based in Italy, MicroVentures SpA is a private equity firm that invests in microfinance institutions (MFIs) through direct equity investments and hybrid instruments such as subordinated and convertible bonds or quasi-equity. MicroVentures SpA invests in South Asia and South America. Financial institutions that invest in MicroVentures are UBI – Banco di Brescia SpA, Fondazione Cassa di Risparmio di Trento e Rovereto, Oltre SpA, Finanziaria di Valle Camonica SpA, ISA – Istituto Atesino di Sviluppo SpA, Finance & Development Srl and ISI Holding and together own 20 percent of the entity. Two private foundations, Fondazione Maria Enrica and Fondazione Peppino Vismara own 30 percent, and the remaining 50 percent is held by individual investors. As of 2008, the fund reported total fund assets of EUR 20 million (approximately USD 27.6 million). More recent financial information is not available.

Sources and Additional Resources

[1] VCCircle, “Grameen Koota raises around $13.5M of fresh equity from existing investor MicroVentures,” by Anuradha Verma, May 2014, http://www.vccircle.com/news/micro-finance/2014/05/16/grameen-koota-raises-around-135m-fresh-equity-existing-investor

MicroCapital, February 1, 2014, Triodos Loans $9.6m to Microfinance Institutions Grameen Koota of India, Koperasi Mitra Dhuafa (Komida) of Indonesia 

MicroCapital, June 16, 2013, Creation Investments Social Ventures Fund II Completes Closing with $75m, Disburses Equity Investments in Grupo Finclusion of Mexico; Sonata, Grameen Koota of India

MicroCapital, March 14, 2013, Grameen Koota of India Receives $9.8m in Equity from Incofin, MicroVentures, Aavishkaar Goodwell, Creation Investments; $4m in Debt Funding from Deutsche Bank Microfinance Fund

MicroCapital Universe Profile: Grameen Financial Services Private Limited (GFSPL)

MicroCapital Universe Profile: MicroVentures SpA

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: