Developing World Markets (DWM), a US-based social investment fund manager, has made an INR 500 million (USD 10 million) investment in SMILE Microfinance Limited (SMILE), a Chennai-based microfinance institution (MFI). This is the first external equity financing SMILE has received, and the investment is the first equity investment made by DWM in an Indian MFI. SMILE is aiming to reach out to 2.5 million customers over the next five years. Grameen Capital India, an investment bank focused on microfinance and other business models in the base of the pyramid space, was the sole equity advisor to SMILE for this transaction.
According to the Microfinance Information Exchange (MIX), SMILE has total assets worth USD 12.5 million, a gross loan portfolio of USD 9.4 million and 129,546 active borrowers.
By: Christine Chang, Research Associate
About SMILE Microfinance Limited (SMILE):
SMILE Microfinance Limited (SMILE) is a Chennai-based MFI that began its operations in 2004 and has reached 300,000 households. It currently has 95 branches across 12 districts in the state of Tamil Nadu, India. It has cumulatively disbursed over INR 5.7 billion (USD 115 million) with a recovery rate of over 99 percent.
About Developing World Markets (DWM):
Developing World Markets (DWM) is a US-based asset manager and investment bank dedicated to making socially positive investments to promote sustainable economic development. It provides both debt and equity investments in MFIs and other socially motivated organizations. It currently has USD 600 million assets under management and has invested in over 100 MFIs in over 30 countries globally.
Additional Resources:
VCcircle.com: Chennai MFI Smile Raises Rs 50Cr From US Fund, March 16, 2010: http://www.vccircle.com/500/news/chennai-mfi-smile-raises-rs-50cr-from-us-fund
MicroCapital Universe: SMILE Microfinance Limited (SMILE): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=S.M.I.L.E+Microfinance+Limited+%28SMILE%29
MicroCapital Universe: Developing World Markets (DWM): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developing+World+Markets+%28DWM%29
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