MICROCAPITAL BRIEF: Sonata Finance of India Raises $6m in Equity from Creation Investments, Michael and Susan Dell Foundation, Individual Investors

Sonata Finance Private Limited, an Indian microfinance institution (MFI) that serves India’s northern states, recently announced that it has closed a Series D equity raise of INR 350 million (USD 6.71 million). Investors include Creation Investments, a US-based investment fund; the Michael and Susan Dell Foundation, a US-based nonprofit organization; Mr Swaminathan Aiyar, an Indian journalist; and Mr Anup Kumar Singh, promoter and managing director of Sonata. Unitus Capital, an India-based financial advisory firm affiliated with US-based nonprofit Unitus Labs, was the sole financial adviser for Sonata in the transaction.

For fiscal year 2011, Sonata reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 23.1 million, a gross loan portfolio of USD 20 million and approximately 132,000 borrowers.

By Charlotte Newman, Research Associate

About Sonata Finance Private Limited
Established in 2006, Sonata Finance Private Limited is an Indian microfinance institution with its headquarters in
Allahabad, Uttar Pradesh. It offers income-generating loans, emergency loans, savings and insurance. The maximum
loan size offered is INR 12,000 (USD 230) as of 2012. For fiscal year 2011, Sonata reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 23.1 million, a gross loan portfolio of USD 20 million and approximately 132,000 borrowers.

About Creation Investments
Creation Investments Capital Management LLC is an alternative investment management company whose mission
is to alleviate global poverty by making direct, for-profit investments in organizations that engage in economic
development. Creation Investments manages the Creation Social Ventures Fund I, which invests in microfinance
institutions (MFIs) in Latin America and Europe. The company is headquartered in Chicago in the US state of Illinois.
It does not report financial data to the Microfinance Information Exchange (MIX), the US-based nonprofit data
provider.

About Michael and Susan Dell Foundation
The US-based nonprofit Michael & Susan Dell Foundation was established in 1999 to provide grants to organizations
that focus on education, childhood health and family economic stability. The foundation has committed approximately
USD 700 million to nonprofit organizations working in communities in the United States, South Africa and India. As of
2010, the foundation reported total assets of USD 906 million.

About Unitus Capital
An affiliate of Unitus, a family of US- and India-based financial enterprises that focus on poverty alleviation, Unitus Capital is a financial advisory firm that specializes in arranging capital for microfinance institutions (MFIs) and other enterprises that aim to benefit poor people. 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:

Information sent to MicroCapital.org from Unitus Capital: “Press Release: Microfinance Institution Sonata Finance
Private Limited Raises Equity of Rs. 35 Crore.”

MicroCapital.org story, February 14, 2012, “MICROCAPITAL BRIEF: Unitus Labs Launches Unitus Seed Fund, to
Invest in Small Anti-Poverty Enterprises in India,” https://www.microcapital.org/microcapital-brief-unitus-labs-launches-unitus-seed-fund-to-invest-in-small-anti-poverty-enterprises-in-india/

MicroCapital.org story, January 20, 2010, “MICROCAPITAL BRIEF: IFMR Capital Structures $6.5m
Securitization of Microloans Originated by Four Microfinance Institutions in India,” https://www.microcapital.org/microcapital-brief-ifmr-capital-structures-65m-securitization-of-microloans-originated-by-four-microfinance-institutions-in-india/

MicroCapital Universe Profile: Sonata Finance Private Limited
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Sonata+Finance+Pvt+Ltd

MicroCapital Universe Profile: Creation Investments
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Creation+Investments+Capital+Management+Limited+Liability+Corporation+%28LLC%29

MicroCapital Universe Profile: Unitus Capital
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Unitus+Capital

MicoCapital Universe Profile: Michael and Susan Dell Foundation
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Michael+and+Susan+Dell+Foundation

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

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