Mauritius' Lok Capital and Bombay-based JM Financial have announced dual investments in leading Indian MFI Spandana for a combined $12.1 million (Rs. 491 million).
Below is a copy of Lok Capital's press release as well as a news clip based on JM's Press Release from Indian financial news source the Business Standard.
(full disclosure: this blogger works for Lok's investment advisory arm...)
Enjoy, and Congrats to Padmaja Reddy and the Spandana team!
FOR
IMMEDIATE RELEASE
LOK
CAPITAL INVESTS $2.25 MILLION IN SPANDANA
July
9, 2007 NEW DELHI -- Lok Capital, a Mauritius-based microfinance venture capital
fund, announces an investment of $2.25 million in
Spandana Sphoorty
Innovative Financial Services, one of the largest and most efficient
microfinance institutions in South
Asia.
Lok’s investment will help the company continue providing diversified financial services to lower income clients as well as expand its product portfolio and geographical reach across India.
Spandana is one of India's leading microfinance
institutions, “MFIs,” with over a million clients and more than $100 million of
outstanding loan portfolio. The organization operates in five Indian states and
is the sole microfinance partner for Western Union
Spandana Founder and Managing Director Padmaja Reddy welcomed Lok Capital to the Spandana team:
“We are very pleased to be working with Lok. We see a strategic fit
between our philosophies, and a shared commitment to the welfare of those
previously overlooked by financial service providers, while also generating more
tangible returns. Together we are poised to identify untapped opportunities and
take the necessary measures to successfully meet them. We believe the
partnership with Lok will help Spandana reach the next level of scale and
professionalism.”
Mr. Vishal Mehta, General Manager of Delhi-based Lok Advisory Services, which advised the Lok Capital Fund on the transaction, expressed his enthusiasm for Padmaja Reddy and Spandana:
“Under Padmaja’s leadership, Spandana has demonstrated world class
growth and efficiency in microfinance. What is most attractive for us in this
transaction is the relationship and trust we have been able to build with the
promoter. We believe in Spandana’s products and values and are confident that
this investment represents one of the best opportunities for supporting the
growth of the commercial microfinance sector in India."
###
ABOUT
SPANDANA
Spandana provides financial services tailored towards lower income customers, primarily women, through its network of 339 branches in 5 states. The organization was founded in 1998 by Padmaja Reddy in Guntur, Andhra Pradesh. It is currently headquartered in Hyderabad, Andhra Pradesh.
Spandana has a history of surpassing growth, profitability and client outreach expectations with its cost-consciousness and focus on productivity. Spandana broke-even within its first year of operations. It was among the first to demonstrate that an MFI can be not only socially uplifting, but also commercially viable for all its stakeholders, thus paving the way for entities that are balancing social objectives with financial returns to enter the MFI space as lenders.
The company
is consistently ranked among the best microfinance organizations in India by rating agencies such as
CRISIL and M-Cril. It also has the distinction of being among the top ten most
productive MFIs in South
Asia.
ABOUT
LOK CAPITAL
Lok Capital
LLC is a $12 million Mauritius-based venture capital fund investing in
commercially-oriented microfinance institutions in India.
______________________________________________
JM India Fund to Invest Rs. 40 Cr in MFI
BS Reporter / Mumbai July 09, 2007
JM Financial India Fund, a $225 million private equity fund sponsored by JM Financial and Old Lane Partners LP, will invest Rs 40 crore in Spandana, a leading microfinance institution (MFI).
Spandana caters primarily to the lower income borrowers located in rural and urban areas. The company operates through its 300-plus branch network in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Tamil Nadu with a client base in excess of 1 million.
The company will use the funds to expand its branch network and pursue growth opportunities - both organically and through acquisitions.
Dilip Kothari, managing director, JM Financial India Fund said: "We believe the company is well placed to benefit from its unique positioning in the niche microfinance sector and the multitude of untapped opportunities that can be customised to meet the needs of the semi-urban and rural masses."
congrats!
Posted by: sheel | July 09, 2007 at 10:50 PM
Thanks Sheel - how much longer are you in India? Going to make it to Delhi before the summer's out? I leave for Africa in 4 days.
Posted by: Mark | July 15, 2007 at 11:57 PM