The India Business Excellence Fund (IBEF), a private equity fund, will invest INR 200 million of equity, the equivalent of over USD 4.4 million, in AU Financiers, a non-banking financial company located in India, in order to provide loans for “low-income, self-employed, first-venture, and small transport entrepreneurs” in rural and semi-urban areas of states including Rajasthan. As reported by MicroCapital in December of 2009, the International Finance Corporation (IFC), the investment arm of the World Bank, will invest INR 350 million, the equivalent of over USD 7.8 million, in the project. IBEF initially invested in AU Financiers in February of 2008. As of January 2010, AU Financiers has disbursed more than INR 8.5 billion in loans, the equivalent of over USD 191 million.
By Christopher Maggio, Research Assistant
About
International Finance Corporation (IFC):
The IFC is the investment arm of the World Bank that aims to “foster sustainable economic growth in developing countries.” The IFC uses loan and debt securities, equity investments, and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approves investments.”
About
AU Financiers Private Limited
AU Financiers is a non-banking financial company operating primarily in the Indian state of Rajasthan. Its services include microfinance, agri-finance, vehicle financing and personal loans to people living in rural and semi-urban areas. It currently has 57 offices, most of which are in Rajasthan. It also has a presence in Maharashtra and Gujarat and expects to expand its presence to other Indian states. The International Finance Corporation (IFC), the investment arm of the World Bank, agreed to provide a INR 350 million investment, the equivalent of over USD 7.8 million in December of 2009. In the same month, India Business Excellence Fund (IBEF), a private equity fund, agreed to invest INR 200 million, the equivalent of over USD 4.4 million. As of January 2010, AU Financiers has disbursed more than INR 8.5 billion in loans, the equivalent of over USD 191 million.
About
India Business Excellence Fund (IBEF)
India Business Excellence Fund (IBEF) is a private equity fund that was founded in 2007. It is managed and advised by Motilal Oswal Private Equity Advisors Private Limited, the private equity arm of Motilal Oswal Financial Services Limited, a financial company based in Mumbai, India. According to its website, as of April 5, 2010, IBEF has received funding worth INR 5.5 billion, the equivalent of over USD 125 million, from Indian and overseas investors.
Additional Resources
IFC press release entitled ‘IFC, IBEF Support Small Entrepreneurs in Rural India, with Investment in AU Financiers’: http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=EA60AC59D0FBC259852576F70050BC9C
MICROCAPITAL.ORG BRIEF: International Finance Corporation (IFC) Set to Invest $7.5m in AU Financiers of India: https://www.microcapital.org/microcapitalorg-brief-international-finance-corporation-ifc-set-to-invest-75m-in-au-financiers-of-india/
MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC)
MicroCapital’s Microfinance Universe profile: AU Financiers
MicroCapital’s Microfinance Universe profile: India Business Excellence Fund (IBEF)
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