Grameen Financial Services Private Limited (popularly known as Grameen Koota) has raised INR 20 crore (approximately USD 4.27 MM) of debt capital through an issuance of secured, redeemable, non-convertible debentures (NCDs) to MicroVest I, LP (MV I), a private equity fund formed under US Laws and registered as a Foreign Institutional Investor (FII) sub-account with the SEBI. With Unitus Capital acting as the sole financial advisor, the MV I – Grameen Koota deal marks a FII-registered microfinance investment vehicle (MIV) directly subscribing, for the first time, to a primary NCD issuance by an Indian MFI.
Mr. Suresh Krishna, Managing Director, Grameen Koota, remarked “This transaction is a great milestone for Grameen Koota and is very critical from the perspective of diversified funding. We are proud of this landmark transaction with MicroVest.”
“MicroVest is excited to contribute to Grameen Koota’s growth and development,” said Gil Crawford, CEO of MicroVest Capital Management, LLC. “Grameen Koota is a sophisticated and well-respected MFI. Not only is this deal an excellent opportunity for MV I to enter into a dynamic microfinance market with tremendous latent demand, it also advances an industry-wide vision of comprehensive, commercial, financial inclusion throughout India. MicroVest is always looking to capture innovative market opportunities and is pleased to bring this milestone investment to its MV I portfolio.”
“Diversification of funding sources is very important to Indian MFIs. Grameen Koota and MicroVest have entered into a landmark transaction allowing an Indian MFI for the first time to directly raise funds by issuing NCDs through the FII route. Unitus Capital is proud to work with these groundbreaking market leaders in this historic transaction,” states Eric Savage, Managing Director of Unitus Capital.
Grameen Koota has listed the NCDs on the Bombay Stock Exchange.
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About Grameen Financial Services Private Limited (Grameen Koota)
Grameen Koota is a well known MFI, headquartered in Bangalore. An NBFC registered with the Reserve Bank of India, Grameen Koota has a Portfolio Outstanding of Rs. 185 crore with a client base of more than 330,000 spread across 33 districts in Karnataka, Maharashtra and Tamilnadu.
Grameen Koota has recently raised its third round of equity of Rs. 25 Crore from MicroVentures Funds, Italy and Incofin (Belgium). Earlier, Grameen Koota had PE funding of Rs. 11.70 Crore from Aavishkaar Goodwell.
About MicroVest, I, LP
MicroVest I, LP (MV I, LP) is a private equity fund providing debt and equity capital to microfinance institutions in emerging markets. As the first private microfinance investment fund in the United States, MicroVest’s goal is to link capital markets to the entrepreneurial poor by expanding the capacity of profitable MFIs throughout the world. MicroVest is based in the Washington, DC metropolitan area and was founded by CARE, MEDA, and the Seed Capital Development Fund—three non-profit organizations with longstanding credibility and investments in the microfinance industry.
About Unitus Capital
Unitus Capital is a financial advisory firm specializing in arranging capital for MFIs and other social enterprises benefiting those at the bottom of the economic pyramid. Based in Bangalore, Unitus Capital delivers a range of financial advisory and capital market services to clients in India and the rest of Asia. Unitus Capital is currently working on over 20 separate mandates to raise > $400 million for MFIs, social enterprises and social investment funds.
