It is heartening to see that SKS Microfinance is still the darling for VC firms. Micro Finance is not a new phenomenon in India, but SKS has perfected the art and science of this lending mechanism to poor and needy strata of society. It is debated in many quarters that Micro Finance is panacea of all financial ills of rural India and a secured (capitalist) mechanism to alleviate rampant poverty and unemployment from India.
The Economic Times reports that Hyderabad-based microfinance institution, SKS Microfinance has raised $37.3 million in its Series C funding. Apart from the existing investors, Sequoia Capital, Vinod Khosla and Odyssey Capital, two new investors, the U.S. based Silicon Valley Bank and Columbia Pacific, participated in the venture funding. The transaction was completed in December 2007 and the funds will be used to finance MFI’s expansion plans in 2008, ET quotes SKS Microfinance COO MR Rao.
2007 had been a fund raising year for the Indian microfinance sector. Another Hyderabad based MFI Share Microfin had raised $27 million investment from Dubai’s Legatum Capital and Aavishkaar Goodwell. Among the MFI founders, Aavishkaar Goodwell had raised an undisclosed amount from International Finance Corp (IFC), the Netherlands Development Finance Company (FMO), and Deutsche Bank, while Lok Capital has received a funding of $2.5 million from Boston based Accion International, a leading global microfinance institution.
More such funding in Micro Finance / Rural and Agriculture is a great news for India. One thing India is missing big time in the Rural area is use of modern tools and technology to enhance the productivity. Westerns World, particularly America has state-of-the-art tools at very competitive prices. Leasing and Hire Purchase / NBFC’s or Micro Finance companies could use their capital & knowledge to transfer these tools to their rural bases. Higher productivity means sure and higher ROI or IRR, which is the disbursement philosophy of any lending company.
Cheers !!!
MKJ
http://www.insurancemall.in/
http://www.buynowindia.com/
http://wwwnewsandreviews.in/
The Economic Times reports that Hyderabad-based microfinance institution, SKS Microfinance has raised $37.3 million in its Series C funding. Apart from the existing investors, Sequoia Capital, Vinod Khosla and Odyssey Capital, two new investors, the U.S. based Silicon Valley Bank and Columbia Pacific, participated in the venture funding. The transaction was completed in December 2007 and the funds will be used to finance MFI’s expansion plans in 2008, ET quotes SKS Microfinance COO MR Rao.
2007 had been a fund raising year for the Indian microfinance sector. Another Hyderabad based MFI Share Microfin had raised $27 million investment from Dubai’s Legatum Capital and Aavishkaar Goodwell. Among the MFI founders, Aavishkaar Goodwell had raised an undisclosed amount from International Finance Corp (IFC), the Netherlands Development Finance Company (FMO), and Deutsche Bank, while Lok Capital has received a funding of $2.5 million from Boston based Accion International, a leading global microfinance institution.
More such funding in Micro Finance / Rural and Agriculture is a great news for India. One thing India is missing big time in the Rural area is use of modern tools and technology to enhance the productivity. Westerns World, particularly America has state-of-the-art tools at very competitive prices. Leasing and Hire Purchase / NBFC’s or Micro Finance companies could use their capital & knowledge to transfer these tools to their rural bases. Higher productivity means sure and higher ROI or IRR, which is the disbursement philosophy of any lending company.
Cheers !!!
MKJ
http://www.insurancemall.in/
http://www.buynowindia.com/
http://wwwnewsandreviews.in/
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