MICROCAPITAL BRIEF: Elevar and SVB make USD 8.6m Equity Investment In Indian Microfinance Institution Vistaar Livelihood Finance

Elevar Equity Advisors and SVB India Capital Partners have teamed to make an INR 400 million (USD 8.64 million) equity investment in Vistaar Livelihood Finance, an Indian microfinance institution catering to non-agricultural female entrepreneurs. While their stake in Vistaar was not disclosed, Brahmanand Hegde, CEO of Vistaar, stated that the two companies had bought a “substantial minority” in the company.

Vistaar was founded in April of 2010 and offers loans ranging from INR 10,000 (USD 215) to INR 25,000 (USD 540). The organization has set a 2014 goal of 300 to 350 branches serving 1.2 million customers [1]. Vistaar does not report to MIX Market, the microfinance information clearinghouse.

Elevar Equity is headquartered in Bangalore with offices in Seattle and San Francisco. The organization is focused on making investments in development-focused ventures in India, Latin America and Southeast Asia [1, 2]. Elevar also managed Elevar II, formerly known as Unitus I, an equity fund used to invest in individuals and MFIs acting in line with Elevar’s ideals of enabling the poor to create opportunities for themselves. Elevar II reports fund assets of USD 70 million as of 2009.

SVB India Capital Partners is a subsidiary of Silicon Valley Bank, an American venture capital firm, and is based in Bangalore. It makes venture capital investments in early- and mid-stage Indian companies [3]. Silicon Valley Bank, the parent organization, reports total assets of USD 13.5 million as of March 2010 [4].

By Matthew Castner, Research Assistant

About Elevar Equity Advisors:

Elevar Equity is headquartered in Bangalore with offices in Seattle and San Francisco. The organization is focused on making investments in development-focused ventures in India, Latin America and Southeast Asia.

About Elevar II:

Elevar Equity II is a fund launched by Elevar Equity in 2008 when Legatum and Omidyar Networks each committed USD 20 million to the fund. The fund makes equity investments in high-growth microfinance institutions (MFIs) and to entrepreneurs building companies providing services and products in emerging markets. Elevar Equity II is the successor to the Unitus Equity Fund (closed in 2007), which Elevar managed on behalf of Unitus.

About SVB India Capital Partners:

SVB India Capital Partners is a subsidiary of Silicon Valley Bank, an American venture capital firm, and is based in Bangalore. It makes venture capital investments in early- and mid-stage Indian companies. Silicon Valley Bank, the parent organization, reports total assets of USD 13.5 million as of March 2010.

About Vistaar Livelihood Finance:

Vistaar was founded in April of 2010 and offers loans ranging from INR 10,000 (USD 215) to INR 25,000 (USD 540). The organization has set a 2014 goal of 300 to 350 branches serving 1.2 million customers. Vistaar does not report to MIX Market, the microfinance information clearinghouse.

Additional Resources

[1] VC Circle: “MFI Startup Vistaar Raises Rs 15Cr From Elevar, SVB India Capital,” by Sarimul Islam Choudhury, May 20, 2010, http://www.vccircle.com/500/news/mfi-startup-vistaar-raises-rs-15cr-from-elevar-svb-india-capital

[2] Elevar Equity: “About us,” http://www.elevarequity.com/about-elevar.html

[3] Silicon Valley Bank: “SVB India Advisors,” http://www.svb.com/Products-and-Services/Global-Offices/SVB-India-Advisors/

[4] Silicon Valley Bank: “2010 First Quarter Financial Results,” http://files.shareholder.com/downloads/SIVB/930213018x0x368351/a34903af-fdcc-42fc-b5bc-25561ba16392/Q1_10_PR_FINAL.pdf

MicroCapital’s Microfinance Universe profile: Elevar Equity Advisors: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Elevar+Equity+Advisors

MicroCapital’s Microfinance Universe profile: Elevar II: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Elevar+Equity+II

MicroCapital’s Microfinance Universe profile: SVB India Capital Partners: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SVB+India+Capital+Partners

MicroCapital’s Microfinance Universe profile: Vistaar Livelihood Finance: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vistaar+Livelihood+Finance

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

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