Existing Investors Hivos Triodos Fonds and Lok Capital participate in the funding of the BASIX Group subsidiary
Bhartiya Samruddhi Finance Limited (BSFL), a Livelihood Promotion Institution today announced that it has closed its Series C with Rs 118 crore ($26 million) of equity. Matrix Partners India has invested Rs 100 crore as the lead investor in the funding of BSFL along with returning investors Hivos Triodos Fonds and Lok Capital, in a total transaction size of Rs 118 crore. BSFL is the flagship company of the BASIX Group, promoted by Mr. Vijay Mahajan.
Welcoming Matrix Partners, India to BSFL, Mr. Vijay Mahajan, Chairman of BSFL and BASIX said “Matrix with their long term investment horizons and an in-depth understanding of the MFI sector complement the BASIX mission of inclusive growth through sustainable livelihood promotion in India, with valuable growth capital. With this capital infusion, during the current fiscal year, we will double our credit portfolio to over two million customers and Rs 2000 crore in outstandings, while our micro-insurance and micro-pensions services will reach three million, and our Agri/Business and Institutional Development Services one million, poor households respectively”.
Mr. Sajeev Viswanathan, Managing Director & CEO, BSFL said “This infusion of $ 26 M capital provides BSFL a very strong balance sheet thereby positioning us to leverage scale and enhance operational efficiency. This will have a direct positive impact on the cost to our customer and at this instance we are pleased to announce that a significant portion of our clients will benefit by an Annual Percentage Rate (APR) reduction of atleast 100 basis points (1%)” .
"As the pioneer of the Indian Microfinance industry, Mr. Vijay Mahajan needs no introduction and it is our privilege to partner in his vision of promoting livelihoods for India’s poor. Sajeev’s stellar leadership of BSFL makes us excited about the scale that BSFL will achieve in the coming years and the impact that it will have for India. Matrix has always believed that Microfinance companies need a broader approach beyond micro–credit and BSFL’s livelihood promotion focus is a perfect fit for us" added Avnish Bajaj, co–founder & Managing Director, Matrix India. With this investment, Avnish Bajaj will join the Board of Directors of BSFL.
Intellecap, a pioneer in providing investment banking services to Microfinance and other socially relevant businesses, acted as BSFL's sole advisor to the issue.
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About BSFL:
Bhartiya Samruddhi Finance Limited (BSFL) is a Livelihood Promotion Institution which was promoted by the BASIX Group in 1997. BSFL currently has operations in 15 states, where it serves over a million credit, two million insurance and half a million agri/business services customers. BSFL currently has an outstanding loan book of over Rs. 1,000 crores.
About BASIX:
The BASIX Group is a conglomerate of financial and knowledge based social enterprises co-promoted by Vijay Mahajan in 1996. Over the years, the BASIX Group has promoted and supported several livelihood focused institutions such as BSFL, Krishna Bhima Samruddhi Local Area Bank (KBSLAB), BASIX Academy for Livelihood and Microfinance Practice (B-A-LAMP), BASIX Academy for Building Lifelong Employability (B-ABLE) and C-TRAN, an energy and environment advisory firm. BASIX also has a robust international consulting practice across five countries. Further information is available at www.basixindia.com
About Matrix Partners India:
Matrix Partners India is an investment firm with Rs 1,500 crore under management. The firm invests in companies targeting the Indian domestic market with a sector independent investment strategy focused on generating exceptional returns. The firm invests up to Rs 125 crore in a company depending on its stage of development and has invested in several companies including FIITJEE, Itzcash Card, Siesta Hospitality and Tree House. The Mauritius based fund’s investors include leading university endowments and family foundations. Matrix Partners has a global network of funds investing in the US, China and India with $2 billion under management. Further information is available at www.matrixpartners.in
About HTF:
Triodos SICAV II - Triodos Microfinance Fund: Triodos Microfinance Fund was launched in March 2009 and is open for institutional investors and private banking clients internationally. The fund aims to increase access to financial services for the working poor in developing countries. Triodos Microfinance Fund is one of the four specialized microfinance funds under management of Triodos Investment Management, a 100% subsidiary of Triodos Bank. Triodos Bank is the leading values-driven bank in Europe. Triodos Investment Management has been a pioneering provider of capital to the microfinance sector since 1994. At year-end 2009 the total assets under management in microfinance amounts to EUR 236 million.
Triodos Fair Share Fund: At its launch in 2002, Triodos Fair Share Fund was one of the first investment funds for retails investors in the microfinance sector worldwide. The fund allows private individuals to invest in the microfinance sector in developing countries. The fund is one of the four specialized microfinance funds under management of Triodos Investment Management, a 100% subsidiary of Triodos Bank. Triodos Bank is the leading values-driven bank in Europe. Triodos Investment Management has been a pioneering provider of capital to the microfinance sector since 1994. At year-end 2009 the total assets under management in microfinance amounts to EUR 236 million.
About Lok Capital:
Lok Capital is a $22m equity fund dedicated to making long-term investments in Indian MFIs. Lok Capital promotes financial inclusion through equity investments in commercially oriented companies delivering microfinance and associated services to the low-income segment. Further information is available at www.lokcapital.com