Aavishkaar Goodwell India Microfinance Development Company Ltd, a microfinance focused private equity firm, has secured a USD 15 million commitment from the International Finance Corporation (IFC), the private investment arm of the World Bank, for its second fund. The fund, which is expected to raise USD 100 million, will invest in microfinance, housing finance and technology related to social ventures. Aavishkaar Goodwell’s first fund, which closed in May of 2008, raised USD 18.3 million.
By Stefanie Rubin, Research Associate
About Aavishkaar Goodwell India Microfinance Development Company Ltd:
Aavishkaar Goodwell India Microfinance Development Company Ltd is a for-profit business development company that provides equity finance and support to entrepreneurial microfinance organizations in India. The company is building a portfolio of USD 25 million in 30-40 microfinance start-ups and 8-10 fast growing institutions. For microfinance start-ups, Aavishkaar Goodwell partners with the IntelleCap financing program. The franchising program aims to reach out to 10 million clients and add USD 1 billion of outstanding loans by 2010.
Aavishkaar Goodwell was initiated by an Indian-Dutch joint venture. The investment team in India invests alongside the team that manages Aavishkaar India Micro Venture Capital Fund. The Dutch microfinance private equity company Goodwell Microfinance Development Company is the leading investor in Aavishkaar Goodwell, along with development financial institutions and commercial banks, including the Netherlands Development Finance Company (FMO), the International Finance Corporation, and Deutsche Bank.
About the International Finance Corporation (IFC):
The International Finance Corporation (IFC), the investment arm of the World Bank Group, was created to support financial private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses and services. It uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It invests in financial institutions in emerging markets as well as provides technical assistance. IFC has 182 member countries that collectively determine its policies and approve investments. In 2009, IFC made new investments in developing countries that reached a total of USD 14.5 billion.
Additional Resources:
Source Article: VCCircle: IFC To Invest $15M In Aavishkaar Goodwell Fund II: http://www.vccircle.com/500/news/ifc-to-invest-15m-in-aavishkaar-goodwell-fund-ii
MICROCAPITAL BRIEF: Aavishkaar Goodwell, Company Providing Equity Finance for Microfinance Institutions (MFIs), Seeks to Raise USD 100 Million for Second Fund: https://www.microcapital.org/microcapital-brief-aavishkar-goodwell-company-providing-equity-finance-for-microfinance-institutions-mfis-seeks-to-raise-usd-100-million-for-second-fund/
MicroCapital Universe: Aavishkaar Goodwell India Microfinance Development Company Ltd: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aavishkaar+Goodwell+India+Microfinance+Development+Company+Ltd
MicroCapital Universe: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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