Comat raises Rs 60 crore from Omidyar and Unitus

Comat Technologies, which operates a network of rural business centres, has announced it has received an investment of Rs 60 crores from Omidyar Network and the Unitus Equity Fund (UEF). Omidyar Network, the philanthropic investment firm of eBay founder Pierre Omidyar, led the investment round, which marks the organisation’s first direct investment in India.  Comat is the first non-microfinance investment for UEF. Managed by Elevar Equity LLC, UEF is a private equity fund that makes strategic investments in microfinance institutions and social enterprises.
 
The investment will enable Comat to expand to new States, accelerate service delivery for training and financial services, strengthen management bandwidth, and enhance its brand.
 
Citing the latest investment as critical to spurring rural inclusion, Sriram Raghavan, CEO, Comat Technologies said, “The infusion of funds from international, like-minded investors provides us singular focus and direction to benefit and transform the lives of rural citizens.  The fact that we have already touched one million farmers in the state of Karnataka alone validates that what we have embarked on is not an experiment, but a proven, scalable and transformational business model.”
 
Comat delivers information-based services to rural citizens in India through its wholly owned network of ICT-enabled Rural Business Centres.  By March 2009, Comat is aiming to increase its network six fold to own and operate 6,800 Rural Business Centres from its current 1,100 Centres, across 10 Indian states – Uttar Pradesh, Uttarakhand, Tripura, Sikkim, Karnataka, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh. The Centres act as the last mile solution for delivering employability training, education, insurance, finance and essential government services in a predictable and efficient manner to rural customers.  
 
“Omidyar Network is truly excited that our first direct investment in India is with Comat, a company motivated by its impact,” said Matt Bannick, managing partner, Omidyar Network. “Comat’s success depends upon the social value their services provide, and technology is key to leveraging its suite of offerings. Omidyar Network’s funding will enable Comat to reach hundreds of thousands of new rural customers, providing them with access to products and services that can improve their lives.”
 
“We are excited to work with Comat in our first non-microfinance investment since we began investing in 2006.  This investment signifies our expansion beyond microfinance and confidence in emerging market social entrepreneurs,” said Sandeep Farias, Managing Director of UEF.