Bangalore-based Grameen Financial Services Pvt Ltd. (GFSPL), popularly known as Grameen Koota announced its third round of equity funding of Rs 53.20 crores from Creation Investments (Rs 37.5 crores), Incofin and MicroVentures.
GFSPL has been working with poor and low-income households for the past 13 years and has provided these households with diverse financial and developmental services that cater to all life-cycle needs of its over 3.5 lakh clients spread across three states of Karnataka, Maharashtra and Tamil Nadu. The equity funding comes close at the heels of the institution receiving Rs 21 crores in debt funding through unsecured, redeemable, non-convertible debentures (NCDs) from Global Commercial Microfinance Consortium II B.V., Netherlands, a fund managed by Deutsche Bank.
Speaking on the new equity infusion, GFSPL Managing Director Suresh Krishna, said “The newly infused funding will add to the growth of the company and help Grameen Koota achieve its target of reaching out to over 10 lakh poor and low income households. The capital will also strengthen our vision towards extending and expanding our loan operations to other neighbouring states.”
GFSPL understands that micro-lending cannot happen in isolation and therefore has rigorously engaged in social development activities including entrepreneurial education, health, sanitation, etc. Commenting on the equity raised, Founder-Chairperson, GFSPL Vinatha Reddy, added “Ours has been a constant endeavour towards being a well run MFI with a firm social purpose and we are happy that existing investors have reposed their faith in Grameen Koota's work by increasing their stake, as we welcome Creation Investments, our new investor.”
For Creation Investments, the equity funding is just the beginning of a long relationship with GFSPL. Speaking about the capital infusion, Creation Investments founder-director Ken Vander Weele said “We are excited in partnering with a leading MFI like Grameen Koota that has brought about innovative loan products and are constantly evolving themselves to cater to the financial needs of the poor in India.”
Paolo Brichetti, Chairman of MicroVentures, a veteran in the social capital investment space in developing countries such as India, believes that the equity raised will only benefit the company and further enhance its activities towards accomplishing its vision. He said, “Our relationship with Grameen Koota has deepened a further notch and we are glad that we continue to back an MFI like Grameen Koota that continues to remain a benchmark within the Indian Microfinance sector.”
Speaking on the follow-on investment in GFSPL, Aditya Bhandari (Regional Director, Incofin South Asia) stated “Grameen Koota’s instant brand recall amongst clients and its strong focus on client relationship makes it as one of the best MFIs in the world. We are excited to once-again support GFSPL in its vision to create long term sustainable value for all stakeholders (clients included).”