MICROCAPITAL BRIEF: Acumen Fund Loans $1m to Indian Microfinance Institution Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN)

Acumen Fund, a US-based nonprofit fund that invests in entrepreneurial approaches to reduce poverty, has made a loan amounting to USD 1 million to Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN), an Indian microfinance institution (MFI) that focuses on lending to increase access to clean water and sanitation facilities [1]. Created by Indian nongovernmental organization Gramalaya in 2007, GUARDIAN aims to provide “easy access to water and sanitation facilities at household level through micro credit.” [2] The funds from Acumen are intended to allow GUARDIAN to build its portfolio and become self-sustaining [1].

As of 2011, GUARDIAN reported a gross loan portfolio of INR 51.2 million (USD 966,000) and approximately 24,400 borrowers. GUARDIAN does not report to the US-based nonprofit Microfinance Information Exchange (MIX).

Based in New York City, the Acumen Fund was founded in 2001 with seed capital from the Rockefeller Foundation, the Cisco Systems Foundation and individual philanthropists. It focuses on early-stage debt and equity investments in enterprises that provide low-income customers with access to healthcare, water, housing, alternative energy or agricultural inputs.

By Kristha Abores, Research Associate

About The Acumen Fund:

Founded in 2001 with seed capital from the Rockefeller Foundation, the Cisco Systems Foundation and individual philanthropists, the Acumen Fund is a nonprofit venture fund based in New York City. It advocates the use of entrepreneurial approaches to tackle poverty, focusing on early-stage debt or equity investments in enterprises that provide low-income customers with access to healthcare, water, housing, alternative energy or agricultural inputs. Commitments generally range from USD 300,000 to USD 2.5 million per investee with an expected payback timeframe of five to seven years.

About Gramalaya:

Gramalaya, established in 1987, is a nongovernmental organization (NGO) based in the Indian state of Tamil Nadu. Its mission involves “promoting water, sanitation, hygiene and overall improvement of the rural, urban, coastal and tribal population in India.” It subsidiaries include Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN), which aims to provide “easy access to water and sanitation facilities at household level through micro credit;” Gramalaya Entrepreneurs Associates (GREAT), which offers training and financial linkage especially to women’s self-help groups; and Gramalaya Microfin Foundation (GMF), which aims to “eradicate poverty through livelihood promotion activities through increased access to financial services.” As of March 2009, Gramalaya reported total assets of INR 14.6 million (USD 277,200).

About Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN):

Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN), a microfinance institution (MFI) created by Indian nongovernmental organization Gramalaya in 2007, aims to provide “easy access to water and sanitation facilities at household level through micro credit.” As of 2011, GUARDIAN reported a gross loan portfolio of INR 51.2 million (USD 966,000) and approximately 24,400 borrowers. Guardian does not report to the US-based nonprofit Microfinance Information Exchange (MIX).

Sources and Additional Resources:

[1] “Acumen Fund Announces Investment in GUARDIAN to Finance Water and Sanitation Needs in India,”http://blog.acumenfund.org/2011/11/30/acumen-fund-announces-investment-i…

[2] GUARDIAN: Vision, Mission, http://www.guardianmfi.org/vision_mission.php

MicroCapital.org article, January 10, 2012, “MICROCAPITAL BRIEF: Indian NGO Gramalaya Creates Microfinance Institution Gramalaya Microfin Foundation,” https://www.microcapital.org/microcapital-brief-indian-ngo-gramalaya-crea…

MicroCapital.org article, May 16, 2011, “MICROCAPITAL BRIEF: Acumen Fund, Grameen Foundation Make $1.7m Quasi-Equity Investment in Kenyan Microfinance Institution Juhudi Kilimo,” https://www.microcapital.org/microcapital-brief-acumen-fund-grameen-found…

MicroCapital.org article, April 18, 2011, “MICROCAPITAL BRIEF: Acumen Fund Makes Equity Investment of $1.9m in Pakistani National Rural Support Program (NRSP) Microfinance Bank,” https://www.microcapital.org/microcapital-brief-acumen-fund-makes-equity-…

MicroCapital Universe Profile: The Acumen Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Acu…

MicroCapital Universe Profile: Gramalaya, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Gra…

MicroCapital Universe Profile: Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN),https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Gra…

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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