Bangalore-based microfinance institution Grameen Financial Services Pvt Ltd (Grameen Koota) is planning to raise Rs.80 Cr-100 Cr to fund its credit growth and also for an initial capital to set up a micro-housing subsidiary.

It is awaiting licence from National Housing Bank for this micro-housing subsidiary with an initial capital of Rs.2 Cr, which will offer financial and technical support for affrodable homes in urban and rural/semi-urban areas. It still needs Rs.15-20 Cr to start the operations.

Transaction Reference: HBL

Grameen Koota, a MFI provides poor and low-income households with financial services. It also focuses on providing social development activities and services like education, health, sanitation, awareness on indoor air pollution etc.

This year in Jan, it raised Rs.20 Cr from US-based PE fund MicroVest I, LP (MV I) through issue of NCDs.

In December 2009, it had raised Rs.27.5cr from MicroVentures Investments (Luxembourg), MicroVentures SPA (Italy), Incofin (Belgium) and Aavishkaar Goodwell (India) in its second round of funding. Earlier too Grameen had raised Rs.11.70 cr from Aavishkaar Goodwell.

Currently it has about 5 lakh customers with presence in Karnataka, Tamil Nadu and Maharashtra and a credit book of Rs.350 Cr.

For past few months, many MFI's have raised funds to fund their credit growth. SKS Microfinance raised $358 Mn through IPO after pricing the issue at Rs.985 per share; Swadhaar FinServe Pvt Ltd also raised Rs.27.5 Cr from Microvest and from its existing investors and Fusion Microfinance raised Rs.4.5 Cr From Incofin Investment.

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