VC Firms, Lok Capital, Aavishkar, and SIDBI invest $10 Million in Bhartiya Samruddhi MFI
Bhartiya Samruddhi MFI (BSFL) has announced that it had received an investment of $10 million in series B funding from three vc firms, which are Lok Capital, Aavishkar, and SIDBI. BSFL is based in Hyderabad, India, and was founded in 1996. The main goal of BSFL is to provide good sustainable funding for rural areas in India and to promote the livelihoods of the people of those rural areas. BSFL is supported its holding company, BASICS, Ltd, which provides financial services. As of November, 2001, BSFL has had offices throughout Maharashtra, Orissa, and Jharkhand. Along with this financing, the deal will also require that several of BSFL’s existing investors, which are IFC, Shorecap International, Ltd., Stichting Hivos-Triodos Funds, ICICI Banking Ltd, and HDFC, to engage in a partial exit.
BSFL currently has a loan portfolio of over $92.4 million and has over 1.5 million clients throughout 15 states in India and intends to reach over 10 million clients by 2014. According to the chairman of SIDBI, RM Malla, this funding will allow BSFL to continue to maintain its sole goal of leveraging large loans and expand throughout more of India’s states. BSFL would especially like to reach out to more underinvested states, such as Jharkhand, Bihar, and the northeastern regions of India.
Lok Capital is a vc firm that mainly deals with equity capital and capacity support to micro-finance firms throughout India.
Avishkar is a venture fund that promotes venture funds in rural and semi-urban areas of India. The main belief of Avishkar is that entrepreneurs can be a driving force for development in under developed areas of India and for this, Avishkar provides funding from $20,000 to $500,000 in funding rounds along with operational and strategic support to market viable businesses. Rural and semi-urban India has a population of about 800 million people and these people still live in a depressed standard of living, despite the amazing development growth in India.
SIDBI was founded in 1990 and was established by the Small Industry Development Bank of India Act of 1989. SIDBI is a vc arm of India’s government that is to promote the business of India. SIDBI mainly focuses on small industries within India, that have a strong potential to benefit India’s economy by either production, employment or exports. The criteria for small industries to receive capital investments from SIDBI are industries that have investments which do not surpass $10 million in capital. According to “Bankers of London,” SIDBI has been ranked as one of the top 30 development banks in the world.
For more information on BSFL, click here.