MICROCAPITAL BRIEF: Milaap, e27 to Launch Crowdfunded Entrepreneurship Fund for Microenterprise in India

Milaap, an online microlending platform with offices in Singapore and Bangalore, India, reportedly has partnered with e27, a Singapore-based media organization, to launch a crowdfunded entrepreneurship development fund with a target size of SGD 50,000 (USD 40,700). The fund will be disbursed as loans to microentrepreneurs in rural India who lack access to traditional bank lending. Individuals who loan to the fund on the Milaap website will receive the original amount of their loan back after two years, with no interest paid to the individual. Interest charged by Milaap is retained to cover its expenses. Milaap reportedly has raised approximately one third of the target size so far.

Milaap allows individuals to lend a minimum of SGD 15 (USD 12) to the fund. Individual contributions will be matched by five “super angels,” including e27 director Mr Mohan Belani. As of 2012, Milaap reported approximately 1,000 individuals having lent to one or more of its programs. The total amount raised is unavailable.

By Charlotte Newman, Research Associate

Software for fundraising can simplify your business processes.

About Milaap
Milaap is an online microlending platform with offices in Singapore and Bangalore, India. The platform allows individuals to lend a minimum of USD 25 to entrepreneurs in India, Singapore, the United States and the United Kingdom. Although the lender selects a borrower from those listed on the website, the money is used to backfill a loan previously disbursed by one of Milaap’s field partner microfinance institutions. As of 2012, Milaap reported approximately 1,000 individuals having lent to one or more of its programs. The total amount raised is unavailable.

TechCircle: “Crowdsourced Microlending Platform Milaap Launches India-focused Entrepreneurship Development Fund,” http://techcircle.vccircle.com/500/crowdsourced-microlending-platform-milaap-launches-india-focused-entrepreneurship-development-fund/

MicroCapital.org story, May 5, 2011, “MICROCAPITAL BRIEF: 17 Websites Now Allow Individuals to Commit as Little as USD 20 as Microfinance Loans,” https://www.microcapital.org/microcapital-brief-17-websites-now-allow-individuals-to-commit-as-little-as-usd-20-as-microfinance-loans/

MicroCapital.org story, September 8, 2011, “MICROCAPITAL BRIEF: Microfinance Institutions (MFIs) in India Attempt to Raise Funds Using ‘Crowd Sourcing’,” https://www.microcapital.org/microcapital-brief-microfinance-institutions-mfis-in-india-attempt-to-raise-funds-using-%E2%80%9Ccrowd-sourcing%E2%80%9D/

MicroCapital.org story, September 12, 2012, “MICROCAPITAL BRIEF: Citi Foundation Grants $180k to Parinaam Foundation of India to Provide Financial Literacy Training to Clients of Microfinance Institution Ujjivan,” https://www.microcapital.org/microcapital-brief-citi-foundation-grants-180k-to-parinaam-foundation-of-india-to-provide-financial-literacy-training-to-clients-of-microfinance-institution-ujjivan/

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

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