Utkarsh Micro Finance Private Limited (Utkarsh), an Indian microfinance institution (MFI), reportedly has received an INR 200 million (USD 3.7 million) equity investment from Norwegian Microfinance Initiative (NMI) Frontier Fund, which provides technical and financial support to “emerging” microfinance institutions under the management of the public-private partnership NMI; Aavishkaar Goodwell India Microfinance Development Company (AG), an Indo-Dutch for-profit investor in Indian MFIs; and the International Finance Corporation, the private-sector investment arm of the World Bank Group. Neither the sizes of the stakes to be taken nor the individual amounts invested by the three institutions were disclosed. The equity investment brings Utkarsh’s net worth to INR 650 million (USD 12 million), and will reportedly be used to strengthen Utkarsh’s presence in the Indian states of Bihar, Madhya Pradesh, Uttar Pradesh, and Uttarakhand.
As of year-end 2011, Utkarsh reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 19 million, a gross loan portfolio of USD 14.8 million, 106,000 borrowers, return on assets (ROA) of 2.25 percent, and return on equity (ROE) of 6.04 percent.
By Brian LeBlanc, Research Associate
About Utkarsh Micro Finance Private Limited (Utkarsh)
Utkarsh Micro Finance Private Limited (Utkarsh) is a microfinance institution (MFI) based in Varanasi, India. It aims to provide loans to borrowers in states of northern India such as Bihar, Madhya Pradesh, Uttar Pradesh, and Uttarakhand. As of year-end 2011, Utkarsh reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 19 million, a gross loan portfolio of USD 14.8 million, 106,000 borrowers, return on assets (ROA) of 2.25 percent and return on equity (ROE) of 6.04 percent.
About Aavishkaar Goodwell Indian Microfinance Development Company Limited
Aavishkaar Goodwell is an Indian-Dutch joint venture that is looking to build a portfolio of USD 25 million in 30 to 40 microfinance start-ups and 8 to 10 growing microfinance institutions (MFIs). The Dutch microfinance private equity company Goodwell Microfinance Development Company is the leading investor in Aavishkaar Goodwell, along with development finance institutions and commercial banks including the Netherlands Development Finance Company (FMO in Dutch), the World Bank’s International Finance Corporation (IFC) and Germany’s Deutsche Bank. Financial data are unavailable for Aavishkaar Goodwell.
About the International Finance Corporation
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.
About the Norwegian Microfinance Initiative
The Norwegian Microfinance Initiative (NMI) is a partnership between the Norwegian public and private sectors that invests in and provides technical support for microfinance institutions (MFIs) in developing countries. The mission of NMI is “to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs.” NMI makes its investments through two investment funds: NMI Global Fund, which supports the expansion of MFIs that already have large and sustainable operations, and NMI Frontier Fund, which supports emerging MFIs in Sub-Saharan Africa and South Asia. As of 2012, fund capitalization was NOK 360 million (USD 60 million) for the Global Fund and NOK 240 million (USD 40 million) for the Frontier Fund.
Sources and Additional Information:
LiveMint article, http://www.livemint.com/Industry/vEnI54coAG26tUEH6A04yJ/Utkarsh-Micro-Finance-raises-20-crore.html
MicroCapital article, October 3, 2011, “MICROCAPITAL BRIEF: Indian Microfinance Institution Utkarsh Raises $5m in Equity from Norwegian Microfinance Initiative, Aavishkaar Goodwell, International Finance Corporation,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-utkarsh-raises-5m-in-equity-from-norwegian-microfinance-initiative-aavishkaar-goodwell-international-financial-corporation/
MicroCapital article, September 25, 2011, “MICROCAPITAL BRIEF: IFMR Capital Securitizes $15m in Microloans Originated by Indian Microfinance Institutions (MFIs) Asirvad, Disha, Grameen Koota, Mimoza, Satin Creditcare, Suryoday, SV Creditline, Utkarsh,” https://www.microcapital.org/microcapital-brief-ifmr-capital-securitizes-15m-in-microloans-originated-by-indian-microfinance-institutions-mfis-asirvad-disha-grameen-koota-mimoza-satin-creditcare-suryoday-sv-creditline/
MicroCapital article, April 5, 2010, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), the Investment Arm of the World Bank, Provides USD 300,000 Investment to Utkarsh Micro Finance, a Microfinance Start-Up Based in Varanasi, India,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-the-investment-arm-of-the-world-bank-provides-usd-300000-investment-to-utkarsh-micro-finance-a-microfinance-start-up-based-in-varanasi/
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