Lok Capital picks up 24% stake in Asirvad Microfinance

Microfinance Focus, Sept. 10, 2009: Venture fund manager Lok Capital announced on Thursday that it has invested $1.5 million to pick up a 24% stake in the Chennai-based Asirvad Microfinance.
Founded in 2007,  Asirvad has 75,000 borrowers in Tamil Nadu and a portfolio outstanding of over $4.6 million. It has 21 branches in 7 districts and employs 150 persons.
Managed by a team of MFI professionals, Asirvad wants to reach at least one million low income families by 2015. Lok Capital’s investment will allow the company to continue to grow in the state and also enter other states in a phased manner.

Asirvad was founded in 2007 by a group of promoters led by S.V. Raja Vaidyanathan, an IIT and IIM alumni with close to three decades of business experience. With plans to reach at least one million low-income families by 2015, Asirvad is working to organize groups of poor women and provide innovative financial services to them in a sustainable manner. Operationally, Asirvad is one of the most efficient MFIs using mobile technology and software to enhance its efficient operations.

S.V. Raja Vaidyanathan, Non-executive Chairman of Asirvad, said, “This participation will add considerable value to Asirvad. Lok’s experience in the Indian MFI space will go a long way in guiding Asirvad to adopt best in class practices in all areas of management. Both companies share a common social objective of eradicating poverty and putting smiles on the faces of millions of poor in the country.”

Venky Natarajan, Managing Director of Delhi-based Lok Advisory Services, expressed his enthusiasm for the investment in Asirvad, saying “We are very happy to have added Asirvad to our portfolio. In addition to national MFIs like Spandana, Basix and Ujjivan whom we have invested in, Lok is committed to finding and supporting high performing regional MFIs and working with their management teams to take these social enterprises to new levels of professionalism and success. Asirvad is attractive because of its proven ability to achieve superior productivity by leveraging the mobile based MIS platform.”

Lok Capital LLC is a $22 million Mauritius-based venture capital fund investing in commercially-oriented microfinance institutions in India. The Lok Capital fund is advised in India by Lok Advisory Services Pvt Ltd, a New Delhi-based firm composed of management and finance professionals.

© 2009, Microfinance News. All rights reserved. 2008-09

One Comment on “Lok Capital picks up 24% stake in Asirvad Microfinance”

Trackbacks

  1. MICROCAPITAL.ORG STORY: Lok Capital Invests US $1.5 M in Asirvad Microfinance Private Ltd of India

Write a Comment

Gravatars are small images that can show your personality. You can get your gravatar for free today!

Copyright © 2015 Microfinance News. All rights reserved.

© 2009-2011 Microfinance Focus All Rights Reserved

Switch to our mobile site