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.