by Greg Casey -

MICROCAPITAL STORY: A Little World (ALW) of India Closes Series of Financing Totaling $6.3m from Investors including the Bellwether Microfinance Fund, the India Financial Inclusion Fund and Legatum Ventures

A Little World, a technology company based in Mumbia, India, recently finished a round of funding which brought in INR 287m (USD 6.3m). The investors included the Bellwether Microfinance Fund, the India Financial Inclusion Fund and Legatum Ventures. The investments, which were facilitated by Intellecap, are intended to help build ALW’s product portfolio. ALW focuses on using banking technologies to provide low cost financial services to those at the bottom of the economic period.

by Greg Casey -

WHO’S WHO IN MICROFINANCE: The Legatum Group

The Legatum Group, founded in 2006 from the de-merger of Sovereign Global, is a collection of investment organizations based in Dubai, United Arab Emirates. The separate companies comprising Legatum include Legatum Capital, a global investment firm; Legatum Global Development, a socially-responsible investment firm that also provides grants and policy advocacy services to promote sustainable development; the Legatum Center for Development and Entrepreneurship at MIT; and the Legatum Institute, which is an independent policy advisory firm.

by Greg Casey -

MICROCAPITAL STORY: Philip Vassiliou of Legatum Capital Publishes Editorial Supporting For-Profit Microfinance in The Economic Times

In a recent Economic Times editorial, Philip Vassiliou, managing director of Legatum Capital, an international investment firm, argues that, “to reach its full potential, the microfinance sector must embrace free market principles of competitive pricing and commercial incentives.” He also believes that “modifying these incentives, however noble the intention, will only damage the natural development of the sector.” His comments come at a time of fierce debate over the benefits of commercial microfinance.

by Ryan Benson -

MICROCAPITAL STORY: Unitus Launches $56m Microfinance Fund; Key Stakeholders Include Legatum, Omidyar Network

Seattle-based Unitus Equity Fund has raised USD 56 million that it plans to invest solely in commercial microfinance institutions throughout the world. Key stakeholders in the private equity fund include Legatum Group and Omidyar Network, each investing USD 20 million. The remaining USD 16 million was provided by an undisclosed source. Omidyar’s investment in the fund comes in the wake of an April 2008  MicroCapital report that Omidyar awarded a USD 9 million grant to Unitus, a nonprofit that is affiliated with the private equity fund. Omidyar’s grant supported Unitus’ three year expansion plan.

by Stephen Son -

MICROCAPITAL STORY: Investment Group Legatum and Omidyar Network Invest $40m in Unitus Equity Fund II

Legatum, an international private investment group, and the Omidyar Network, a philanthropic investment firm, will invest USD 40 million in Unitus Equity Fund II, a newly created private equity fund that will provide capital to microfinance institutions (MFIs) with an emphasis on growth.

by Stephen Son -

MICROCAPITAL STORY: Documentary on Legatum Pioneers of Prosperity Africa Prize Released, Involves $350k Award for East African Entrepreneurship Sponsored by Legatum and John Templeton Foundation

In a push to generate interest in the idea of African enterprises as investment opportunities, the sponsors of an East African entrepreneurial award competition have just released a documentary online about the selection process for the inaugural Legatum Pioneers of Prosperity Africa prize – which resulted in awards totaling USD 350,000 to six up-and-coming, home-grown companies.  The prize was funded by Legatum, an international private investment group, and the John Templeton Foundation, a philanthropic organization, and also involved partners OTF Group, a competitiveness consulting firm; the S.E.VEN Fund, a non-profit that promotes enterprise-driven solutions to poverty; and the Inter-American Development Bank, a multi-lateral financial institution.

by Elizabeth Nelson -

MICROCAPITAL STORY: Legatum Invests $8.4m in Mumbai-based Microfinance Investment Consultant, Intellecap

Legatum Capital, a private firm that invests in global capital markets and social development initiatives, announced that it has invested USD 8.4 million (INR 34 crore or 340 million) in Intellecap, a company based out of Mumbai and Hyderabad, India which provides business advisory services to investors and organizations seeking both financial and social returns on investments. Among the services offered by Intellecap is Intellecash, a microfinance best practices franchise package that, according to the website, provides franchisees “with the information, systems, and processes that are required to start and manage profitable microfinance operations.” This is India’s first microfinance franchising initiative.

by Elizabeth Nelson -

MICROCAPITAL STORY: Indian Financial Inclusion Firm, A.Little.World, Offers Mobile Microfinance Banking and Draws Big Investors: Enam Financial and Legatum Capital

Enam Financial, a leading Indian financial service provider, has picked up a ten percent stake in A.Little.World, a company which integrates a microfinance model with a new multi-bank payment system in order to bring mainstream banking capabilities to the large population of un-banked rural Indians. The amount of investment was not disclosed.

by the MicroCapital Team -

MICROCAPITAL STORY: New Zealand-based Billionaire’s Legatum group buys $4.5 million Stake in Indian Microfinance Firm

This story comes to us courtesy of LiveMint.com, a division of the Wall Street Journal. New Zealand billionaire Christopher Chandler’s Legatum group bought a $4.5 mn (184,500 Rs) stake in Mumbai-based Financial Information Network & Operations Ltd (FINO). Legatum is a United Arab Emirates-based investment group. Mr. Chandler’s group says that this investment will not only help spur growth in India’s microfinance industry but will also give them a strong foothold in the industry.
Continue reading “MICROCAPITAL STORY: New Zealand-based Billionaire’s Legatum group buys $4.5 million Stake in Indian Microfinance Firm”

by the MicroCapital Team -

MICROCAPITAL STORY:SHARE Microfin Ltd. Receives Historically Largest Indian Microfinance Equity Investment from Legatum and Aavishkaar Goodwell

Private firms Legatum and Aavishkaar Goodwell have agreed to a joint equity investment of USD 27 mm in the capital shareholdings of SHARE Microfin Limited (SML), a microfinance institution (MFI) of India. With a USD 25 mm share of the equity investment, Legatum gains the majority interest of SML, while Aavishkaar Goodwell acquires a minority interest in the MFI with USD 2 mm. The equity investment reaches a record high for Indian SMLs, becoming the largest equity investment of capital ever received by an Indian MFI. SML speculates that the new finances will provide an additional five million loans across five years.
Continue reading “MICROCAPITAL STORY:SHARE Microfin Ltd. Receives Historically Largest Indian Microfinance Equity Investment from Legatum and Aavishkaar Goodwell”

by Kevin van den Brink -

MICROCAPITAL BRIEF: India’s SKS Microfinance Seeks to Go Paperless with IBM MobileFirst Tablet System

SKS Microfinance Limited, a for-profit microfinance institution (MFI) headquartered in Hyderabad, India, recently partnered with IBM MobileFirst, the mobile division of US-based information technology company International Business Machines (IBM), in an effort to improve staff productivity in acquiring customers, completing loan disbursements and collecting repayments [1][2].

by Meraj Husain -

MICROCAPITAL BRIEF: India-based Elevar Seeks to Raise $75m for Third Impact-Investing Private Equity Fund, Receives Commitment from Omidyar Network

Elevar Equity, an India-based private equity fund that is focused on “impact investing,” is seeking to raise USD 75 million for its third fund by the end of 2014. Elevar reportedly has received commitments of unspecified amounts from two investors, including US-based investment firm Omidyar Network.