Unitus Equity Fund L.P., a Seattle-based private equity investment firm announced a funding of Rs 22 Crores (USD 4.52 million) to Madura Micro Finance Limited (MMFL) an Indian microfinance institution. Madura is a non-banking finance company servicing India’s rural poor population. It has credit networks throughout the 182 branches within the rural Tamil Nadue province, and mostly works in association with large commercial banks as sources of credit.Unitus Equity Fund (UEF) is affiliated with Unitus, Inc, an international nonprofit organization with MFI partnerships throughout the world. Founded in the year 2000, it offers financing instruments in the form of direct equity investment, lines of credit, and loan guarantees. Unitus’ current portfolio includes partnerships in Argentina, Brazil, India, Indonesia, Kenya, Mexico, and the Philippines, and plans to further expand into Southeast Asia, China, and Africa. It reports to the MIX microfinance database, and declared USD 9.48 million in assets as of 2005.Unitus Equity invests in microfinance institutions and social enterprises with potentials for high growth and has a portfolio of investments in MFIs throughout India, Mexico and Brazil. The Unitus Equity Fund does not report to the MIX database, and information on its investment portfolio is not readily available. Further MicroCapital stories on UEF and Unitus, Inc can be found here.
Madura Micro Finance will use UEF’s funding to increase its management bandwidth and institutional capacity as well as continue to expand its customer base, which is comprised primarily of women. The firm’s central financing product is a group loan to self help groups (SHGs) which are formed and trained through its partner organization, Microcredit Foundation of India. These SHGs undergo training in good financial practice and business skills before being considered eligible for MMFLs loans. Madura does not post to the MIX database. It reported USD 35 million in disbursements in 2007, and an SHG member base of 500,000.
By Yrenilsa Lopez, Research Assistant
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