Swadhaar FinServe Pvt Ltd has raised Rs 27.5 Cr from Microvest and its existing investors including ACCION International, Unitus Equity Fund and Michael & Susan Dell Foundation.

Microvest has invested through its MFI focused fund - Microvest II LP.

The MFI will use the freshly infused capital to expand in the underserved urban areas and investment in IT infrastructure and product development.

IFC is also considering an investment of $2.25 Mn in Swadhaar.

Grameen Capital India was the sole advisor to the transaction.

Transaction Reference: Dealcurry

Swadhaar Finserve - promoted by Veena Mankar and Haseena Vahanvaty - provides small loans to the urban poor. It has 27 outlets across Mumbai, Baroda and Pune.

Swadhaar offers loans to groups of 3 to 7 women. The loans are mainly given for small home based businesses such as tailoring, bead work, jewellery etc. The loans are given for periods of 6-18 months at an annual interest rate of 18%. It also offers loans to individuals.

In 2008, Swadhaar raised funding from ACCION Gateway Fund, Micheal & Susan Dell Foundation and Unitus Equity Fund.

Earlier in June, Incofin Investment Management invested Rs 4.5 Cr in Fusion Microfinance.

In May 2010, Norwegian Microfinance Initiative invested Rs 4 Cr in Belstar Microfinance through the NMI Frontier Fund.

Microvest II LP is for investments in Microfinance institutions in the emerging markets. In 2009, Microvest invested $4.25 Mn in Grama Vidiyal Micro Finance Pvt. Ltd.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
09/07/10	Swadhaar MFI - Microvest	Private Equity	Microvest II LP	5.90
04/06/10	Swadhaar Finserve - IFC	Private Equity	International Finance Corporation	2.25
13/10/08	Swadhaar FinServe - Accion Gateway Fund,	Venture capital	Accion Gateway Fund	-

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
07/05/12	Private Equity	International Finance Corporation	Ujjivan Financial Services Private Limited	9.35	Planned
07/05/12	Private Equity	International Finance Corporation	Equitas Holdings Private Limited (Formerly Equitas Micro Finance India Private Limited)	18.70	Planned
18/04/12	Private Equity	Looking For	Janalakshmi Financial Services Private Limited	9.65	Planned
16/04/12	M&A	Basix Group	Unknown Asset	-	Planned

 

  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Unitus Equity Fund II	40	Micro Finance	www.unitus.com	Joseph GrennyEd BlandKate CochranRoger CoulterBrigit HelmsEliza Linford KellyGanesh Rengaswamy
Accion Gateway Fund	5.1	Micro Finance BFSI	http://www.accion.org/Page.aspx?pid=270	Siddhartha Hanumara ChowdriMathew SangmaMichael SchleinEnrique Ferraro
Michael and Susan Dell Foundation		Education Healthcare	www.msdf.org	Michael S. DellSusan L. DellAlexander Dell
Microvest II LP		Micro Finance	http://www.microvestfund.com

Company
Name	Promoters	Office	Competitor	Website
Swadhaar FinServe Private Limited	Veena Mankar Haseena Vahanvaty	451, Dindoshilla, 15th Road, Khar, Mumbai - 400052 Maharashtra	Asirvad Microfinance Private Limited Adhikar Microfinance Private Limited Fusion Microfinance Private Limited ESAF Microfinance and Investments Limited Sahayata Microfinance Private Limited Grameen Financial Services Private Limited	www.swadhaar.com

  Advisor

Grameen Capital India