Aavishkaar Goodwell makes partial exit from Equitas Microfinance

Microfinance Focus, September 4, 2010: Aavishkaar Goodwell India Microfinance Development Company Ltd (“AGIMDC”), a USD 18 mn venture capital investment company for the microfinance sector in India has completed its first exit from its microfinance private equity portfolio in India. According to Company official, earlier this year, it reached an agreement with Canaan Partners to make a partial exit of its stake in Chennai Based Equitas Microfinance. The transaction has now been completed, and this week Aavishkaar Goodwell distributed its first investment returns to its investors.

Aavishkaar Goodwell was the first institutional investor in Equitas Microfinance. Their first round of investment in 2008 of USD 1.5 mn has been catalytic in mobilizing additional equity capital for Equitas amounting to USD 40 mn in three additional equity rounds from a mix of social funds and mainstream private equity firms. The exit of Equitas is a first exit for Aavishkaar Goodwell.

Chennai Based NBFC, Equitas Microfinance, started in late 2007, has shown impressive growth rate. Equitas provides microfinance services to more than 1 million clients across five states in India, and has a total outstanding loan portfolio of more than USD 160 million.

Equitas CEO Mr. Vasudevan expressed his appreciation: “Aavishkaar Goodwell has been one of our earliest supporters and Equitas has always valued them for their fair and supportive approach to partnerships.  They believed in us at a time when there were not many such people and not only invested in us but also gave us critical support, especially in areas like technology”.

Mr. Wim van der Beek, Managing Partner of Aavishkaar Goodwell commented,“We try to make a difference by supporting start ups and fast growing MFI’s and bringing them to the mainstream, while maintaining their social mission. When we invested in Equitas their plans were unparalleled, but we believed in the capabilities of Mr. Vasudevan and his team to realize their plans. And they have achieved their ambitions, now touching the lives of over 1 million families and continuing to grow while serving their clients responsibly. With other mainstream investors on board, our initial task is completed. We are proud to be part of the Equitas success story, and will maintain a meaningful stake and continue to support their growth journey.”

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