MICROCAPITAL.ORG BRIEF: Bhartiya Samruddhi Finance Ltd to Raise USD 20-25 Million in Equity Capital

The India-based microfinance institution (MFI), Bhartiya Samruddhi Finance Ltd, which is part of BASIX, a group of companies that participate in microfinance and other services to the poor, is planning to raise USD 20 to 25 million in equity capital in the next two to three weeks [1,2,3]. This comes after Bhartiya Samruddhi raised USD 9.87 million in equity capital in April of 2009 [1]. This investment was covered by Microcapital and investors included Lok Capital LLC, Aavishkaar Goodwell India Microfinance Development Company, and Small Industries Development Bank of India (SIDBI) [4]. S Ramachandran, Bhartiya Samruddhi’s Chief Financial Officer, has stated that the MFI is “in talks with mainstream [private equity] players” [1]. He has also stated that the MFI may turn to raising debt after this round of equity capital, and may raise even more equity in June [1]. Intellectual Capital Advisory Services (Intellecap), “a social-sector advisory firm” that advised the last round of equity capital for Bhartiya Samruddhi, will advise the coming round as well [1,5].

By Christopher Maggio, Research Assistant

About:
Bhartiya Samruddhi Finance Ltd

Description:
Bhartiya Samruddhi Finance Ltd (BSFL) is a “regulated non-banking finance company (NBFC)” based in Hyderabad, India and founded in 1997. It is part of the BASIX Group of microfinance institutions that provide financial services, agricultural/business development services, and institutional development services. According to the MIX Market, the microfinance information clearinghouse, as of March 31, 2009, BSFL has a gross loan portfolio worth over USD 73.6 million, and 498,681 active clients.

Microfinance Information Exchange (MIX) profile (or indicate if organization does NOT report to MIX):
http://www.mixmarket.org/mfi/basix

Organization’s Website:
http://69.89.31.196/~basixind/index.php?option=com_content&task=view&id=40&Itemid=54

Just the Facts:
– Country of Incorporation: India
– Year Founded: 1997
– Legal Status: Company
– Gross Loan Portfolio (as of 31/March/2009): USD 73.6 million
– Number of Active Borrowers (as of 31/March/2009): 498,681
– Area of Operation: India
– Participant(s)/Backer(s)/Investor(s): BASIX, Bhartiya Samruddhi Investments and Consulting Services (BASICS Ltd.)
– Currency: Indian Rupees
– CEO: N V Ramana

Contact:
REGISTERED OFFICE

BASIX
D 9, First Floor,
Greater Kailash Enclave – I,
New Delhi 110 0 48.
Ph: 011 4173 0252 , 011 4173 0454

HEAD OFFICE
3rd floor, Surabhi Arcade,
Bank Street, Troop Bazar, Koti,
Hyderabad-500001
Tel: +91-40-30512500/01
Fax: +91-40-30512502
Email: info@basixindia.com

Additional Resources:
BASIX: http://www.basixindia.com/

BASIX Annual Report 2009: http://69.89.31.196/~basixind/images/BasixAR2009Final.pdf

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=59007859

MICROCAPITAL STORY: Bhartiya Samruddhi Finance Ltd, a Unit of BASIX Group, Raises USD 9.87m in Capital: https://www.microcapital.org/microcapital-story-bhartiya-samruddhi-finance-ltd-a-unit-of-basix-group-raises-usd-987m-in-capital/

Bibliography
[1] Reuters India article entitled ‘Basix arm to raise up to $25M PE money’: http://in.reuters.com/article/indiaDeals/idINIndia-44017620091117?pageNumber=1&virtualBrandChannel=0
[2] Bhartiya Samruddhi Finance Ltd: http://69.89.31.196/~basixind/index.php?option=com_content&task=view&id=40&Itemid=54
[3] BASIX: http://www.basixindia.com/
[4] MICROCAPITAL STORY: Bhartiya Samruddhi Finance Ltd, a Unit of BASIX Group, Raises USD 9.87m in Capital: https://www.microcapital.org/microcapital-story-bhartiya-samruddhi-finance-ltd-a-unit-of-basix-group-raises-usd-987m-in-capital/
[5] Intellecap: http://intellecap.com/about-us

Source article: Reuters India article entitled ‘Basix arm to raise up to $25M PE money’: http://in.reuters.com/article/indiaDeals/idINIndia-44017620091117?pageNumber=1&virtualBrandChannel=0