IFC to make $20m debt investment in MFI Grameen Koota

Grameen Koota Financial Services Pvt. Ltd, a mid-sized microlender from Karnataka, has received a commitment for $20 million in debt investment from International Finance Corp., the private lending arm of the World Bank.

Grameen Koota, founded in 1999 by Vinatha Reddy and Suresh K Krishna, was earlier part of a micro-lending project under T Muniswamappa Trust, a non-governmental organisation. It was subsequently converted into a non-banking financial corporation (NBFC) in 2006-07.

IFC’s investment will be in the form of senior debt investment, through subscription of non-convertible debentures issued by Grameen Koota, it said in a filing.

The funds will be used by the NBFC to diversify its sources of funding and to expand the outreach of access to microfinance to borrowers who have little or no access to formal sources of financing, particularly in central and western parts of India.

The Bangalore-based organisation is currently the sixth largest micro-finance provider in India, with a loan portfolio of $272 million. It has a presence in five states — Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and Chhattisgarh — with 298 branches.

As of 31st December 2015, the shareholders of the Company include promoters (7.7 per cent), CreditAccess Asia NV. (81.2 per cent), Creation Investments Social Funds II (10.23 per cent) and employees (0.87 per cent).

CreditAccess Asia NV is a holding company incorporated in Netherlands with interests across several Asian microfinance institutions such as Grameen in India, One Puhunan in Philippines and Bina Artha in Indonesia and a minority interest in Equitas Holdings Limited in India. Its regional companies in Asia have a total portfolio of €240 million.

Grameen Koota had raised $9.7 million in Series C funding in 2013 from Creation Investments Capital Management, Incofin Investment Management and MicroVentures India. In the same year, Triodos Investment Management invested $8 million through convertible notes.

Also read:

Repco Home Finance raising $40m NCD from IFC to expand business
Online small biz lender Capital Float gets $25m in Series B led by Creation Investments

 

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.