MICROCAPITAL BRIEF: Omidyar Network Provides $5m Grant to Kiva Over 3 Years

The Omidyar Network, a firm based in the US that invests in and gives grants to socially-oriented organizations, recently announced that it has committed USD 5 million in grant funding to Kiva, an online microfinance intermediary, over a period of three years. Omidyar has announced that it will match funds donated by Kiva users, up to USD 2 million, for the first two years of the grant. Kiva will reportedly use the grant to “further develop its technology platform, expand its network of field partners, and continue to invest in due diligence and monitoring capabilities across its growing portfolio” [1].

According to Premal Shah, President of Kiva, “Omidyar Network’s heritage and approach make it a natural partner for Kiva; their funding helps position us to further our work and amplify our social impact.” Kiva operates in 53 countries, has disbursed total loans of USD 153 million and has a default rate of 1.2 percent. Omidyar’s grant is reportedly the largest in Kiva’s history. Omidyar had total assets of USD 413 million as of 2007.

By Julia Korn, Research Associate

About The Omidyar Network:

Founded in the US in 2004, The Omidyar Network is an investment firm that provides investments and grants to “socially responsible” organizations in the areas of microfinance, entrepreneurship, property rights, social media, marketplaces and government transparency. To be eligible for a grant, an organization must be “determined to be aligned to Omidyar Network’s goals, have an identifiable impact, have potential for large-scale impact, have proven leadership, and exemplify innovation.” Omidyar Network typically makes investments of USD 1 million or greater. As of 2007 it had total assets of USD 413 million and had made 17 investments in microfinance institutions (MFIs).

About Kiva:

Incorporated in 2005, Kiva is a US-based online microfinance intermediary allowing individuals to make loans to microfinance institutions (MFIs), which in turn make loans to the poor. Kiva partners with microfinance institutions (MFIs) in 53 countries. As of 2010, the total value of all loans made through Kiva is USD 153 million, there are 742,000 Kiva users, 395,000 entrepreneurs have received a loan through Kiva, 82 percent of Kiva loans have been made to women entrepreneurs, the repayment rate is 98.8 percent, and the average loan size is USD 385.

Sources and Additional Resources:

[1] PR News Wire. “Omidyar Network Awards $5 Million Grant to Kiva to Spur Growth of Microfinance in Underserved Markets” on August 12, 2010. http://www.prnewswire.com/news-releases/omidyar-network-awards-5-million-grant-to-kiva-to-spur-growth-of-microfinance-in-underserved-markets-100537364.html

MicroCapital Universe. Omidyar Network. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Omidyar+Network

MicroCapital Universe. Kiva. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva

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

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