Aviator Emerging Market Fund (EMF), a Mauritius-based entity, recently invested USD 3.1 million in Midland Microfin Limited, a microfinance institution (MFI) that provides women in India with small business loans and insurance services. Most of the loans that the MFI issues are group loans. Midland CFO Amitesh Kumar said the new funding “will help us further our lending capacity and add more branches in other states.”
Established in 2011, Midland is headquartered in the Indian state of Punjab and operates 197 branches in Punjab, six other states in northern India and the Union Territory of Chandigarh. The MFI seeks to “encourage micro-enterprise as a source of sustainable livelihood, by providing financial services with the help of technology.” Midland offers loans of INR 2,899 (USD 39) to INR 50,000 (USD 663) for terms of up to two years for general business purposes as well as for solar lamps, sewing machines and water purifiers. As of March 2020, the MFI has total assets of INR 9.2 billion (USD 122 million) and serves approximately 390,000 borrowers. During the 2019-2020 financial year, Midland disbursed INR 10 billion (USD 133 million) in loans. The institution does not accept deposits.
Aviator EMF focuses on investing in alternative investment funds (AIFs) and financial services providers, including financial technology (fintech) firms in Hong Kong, India, Singapore, the UAE, the UK and the US. In particular, the company focuses on microfinance institutions and other non-bank financial institutions that target individuals and small enterprises. The fund was launched in January 2019. Its financial data remain confidential.
By Madigan Ruch, Research Associate
Sources and Additional Resources
Livemint article on Aviator-Midland deal
https://www.livemint.com/brand-post/mauritius-based-aviator-emf-invests-3-1-million-in-midland-microfin-ltd-11588679446246.html
Midland homepage
http://midlandmicrofin.com/
Aviator homepage
https://www.aviator-emf.com
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