Opportunity International Australia (OIA), a provider of microfinance and enterprise services, has increased its stake in ESAF Microfinance and Investments Private Limited through Delhi-based Dia Vikas Capital. ESAF Microfinance is Kerala’s largest MFI with a client base of over 450,000.
Through the new deal, Opportunity International has increased its stake in ESAF by 6.31 per cent. With this, the total equity capital base of the company has now crossed Rs 48 crore. Earlier in 2009, the Australian company bought around 18 per cent stake in ESAF for Rs 12 crore.
“The new deal was aimed to generate capital for ESAF in order to serve its clients more effectively," said K Paul Thomas, managing director of the company. K Ranjini, managing director, Dia Vikas Capital, said they had decided to increase the stake based on the performance and the future plans of the company.
ESAF was launched in 1992 by its founder and managing director Thomas. At present, the company has a cumulative disbursement of loans worth Rs 1,000 crore, apart from an outstanding loan amount worth Rs 207 crore. The company also provides micro insurance, health care, homes and infrastructure and retail services for the poor. It has a presence in seven states in India, including the Jharkhand and Haryana.