Indian social venture firm and subsidiary of nonprofit Opportunity International Australia, Dia Vikas Capital recently invested INR 278 million (USD 6.1 million) in equity and debt and across four microfinance institutions (MFIs) in India.
Dia Vikas invested INR 130 million (USD 2.8 million), half in equity and half in subordinated debt, in Bullock-cart Workers’ Development Association (BWDA) Finance Limited, an MFI based in the Indian state of Tamil Nadu. As of 2009, BWDA Finance Limited reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 35.4 million, a gross loan portfolio of USD 25.8 million, approximately 220,600 borrowers, return on assets (ROA) of 0.97 percent and return on equity (ROE) of 7.2 percent.
Dia Vikas further invested INR 60 million (USD 1.3 million) comprising INR 30 million (USD 660,000) each in equity and tier-II debt in Rashtriya Gramin Vikas Nidhi North East (RGVN NE), an MFI based in the Indian state of Assam and serving the northeast region of the country. As of 2009, RGVN NE reported to MIX total assets of USD 14.4 million, a gross loan portfolio of USD 12.5 million, approximately 101,300 borrowers, ROA of 3.25 percent and ROE of 101 percent.
Dia Vikas increased its equity stake in Kerala-based MFI Evangelical Social Action Forum (ESAF) Microfinance and Investment Private Limited by INR 38.5 million (USD 855,000), thereby taking its total equity exposure in ESAF to INR 114 million (USD 2.5 million). As of 2009, EASF reported to MIX total assets of USD 40.8 million, a gross loan portfolio of USD 34.6 million, approximately 220,000 borrowers, ROA of 0.25 percent and ROE of 1.44 percent.
Finally Dia Vikas loaned INR 50 million (USD 1.1 million) in Cashpor Microcredit, thereby taking its total subordinated debt exposure in Cashpor to INR 150 million (USD 3.31 million). As of 2009, Cashpor reported to MIX total assets of USD 62.1 million, a gross loan portfolio of USD 59.5 million, approximately 417,000 borrowers, ROA of 3.99 percent and ROE of 147 percent.
As of 2011, Dia Vikas reports having made cumulative investments of approximately USD 29 million in 16 MFIs in India since 2008.
By Medha Ravi, Research Associate
About Dia Vikas Capital:
Established in 2008, Dia Vikas Capital is an Indian social investment fund that is a wholly owned subsidiary of nonprofit Opportunity International Australia. Dia Vikas’ interventions include the provision of equity and quasi-equity support and the provision of technical and operational support to microfinance institutions (MFIs). As of 2011, Dia Vikas has made cumulative investments of approximately USD 29 million in 16 MFIs in India since 2008.
About BWDA Finance Limited:
Established in 1999 in Tamil Nadu, Bullock-cart Workers’ Development Associate (BWDA) Finance Limited was set up to cater to the credit needs of bullock-cart workers. As of 2009, BWDA reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 35.4 million, a gross loan portfolio of USD 25.8 million, approximately 220,600 borrowers, return on assets (ROA) of 0.97 percent and return on equity (ROE) of 7.2 percent.
About Rashtriya Gramin Vikas Nidhi North East (RGVN NE):
Established in 1996, Rashtriya Gramin Vikas Nidhi North East (RGVN NE) is an Assam-based microfinance institution (MFI) that serves the north-east regions of India. As of 2009, RGVN NE reported to US nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.4 million, a gross loan portfolio of USD 12.5 million, approximately 101,300 borrowers, return on assets (ROA) of 3.25 percent and return on equity (ROE) of 101 percent.
About ESAF Microfinance and Investment Private Limited (EMIFL): Established in 1992 and based in Kerala, India, Evangelical Social Action Forum (ESAF) Microfinance and Investment Private Limited is a microfinance institution (MFI) that is promoted by ESAF, an NGO engaged in self help group (SHG) promotion, microfinance and other community development initiatives. It operates in the states of Kerala, Tamil Nadu, Maharashtra, Chhattisgarh, Madhya Pradesh and Delhi. As of 2009, ESAF Microfinance and Investment reported to US nonprofit Microfinance Information Exchange (MIX) total assets of USD 40.8 million, a gross loan portfolio of USD 34.6 million, approximately 220,000 borrowers, return on assets (ROA) of 0.25 percent and return on equity (ROE) of 1.44 percent.
About Cashpor Microcredit:
Established in 1997, Cashpor Microcredit is a Uttar Pradesh-based microfinance institution that serves women in the Indian states of Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh. As of 2009, Cashpor reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 62.1 million, a gross loan portfolio of USD 59.5 million, approximately 417,000 borrowers, return on assets (ROA) of 3.99 percent and return on equity (ROE) of 147 percent.
Sources and Additional Resources:
Dia Vikas Press Release, “Dia Vikas Picks up Equity Stake in BFL, EMFIL & RGVN (NE)”, http://diavikas.org/modules/user/newsDetails.php?newsId=13
MicroCapital.org story, June 25, 2009, “MICROCAPITAL STORY: Fund-raising Continues In India – Kerala’s ESAF Microfinance And Investments Raises $2.5 Million Through Sale Of Minority Stake To Opportunity International Australia’s Subsidiary, Dia Vikas Capital”, https://www.microcapital.org/microcapital-story-fund-raising-continues-in-india-kerala%E2%80%99s-esaf-microfinance-and-investments-raises-usd-25-million-through-sale-of-minority-stake-to-opportunity-international-australias/
MicroCapital Universe: Dia Vikas Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dia+Vikas+Capital
MicroCapital Universe: BWDA Finance Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BWDA+Finance+Limited
MicroCapital Universe: Rashtriya Gramin Vikas Nidhi North East (RGVN NE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Rashtriya+Gramin+Vikas+Nidhi+North+East+%28RGVN+NE%29
MicroCapital Universe: ESAF Microfinance & Investment Private Limited (EMIFL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ESAF+Microfinance+and+Investment+%28EMFIL%29
MicroCapital Universe: Cashpor Microcredit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cashpor+Microcredit
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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