DealCurry : SIDBI to Invest in MFIs in Eastern Region

Tue, September 07, 2010

SIDBI to Invest in MFIs in Eastern Region
by Jarna Gandhi | January 20,2010 - 12:42 PM

Topics : Venture Capital
Industries : Banking/Financial Services

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SIDBI plans to invest in fresh equities of 5-6 micro-finance institutions in the under-served Eastern regions of India.

The bank is considering picking up stake in Asmitha microfinance, Village Financial Services and Sahara Uttarayan. It mayb also convert its loans to equity in atleast 6 MFIs. The investment size is unknown.

SIDBI offers transformation loans to MFIs and NGOs to help them upgrade into NBFCs.

In December 2009, it raised its stake in Bandhan from 1.31% to 12.23% for $10.7 mn. It also lent a loan of Rs 250cr Bandhan in September 2009 to help the MFI grow its lending portfolio and cover 5lakh additional borrowers.

SIDBI has identified around 50 MFIs in the region for offering loans. It has doubled its annual disbursement target for 2009-10 to Rs540cr from the actual Rs260cr in 2008-09. If the bank achieves its target, SIDBIs exposure to MFIs in the region would touch Rs700cr by March 2010.

KVEZAR^® VIEW

DEAL TRACKER FOR

Date	Type	Sub Type	Buyer	Size
Asmitha- SIDBI
20/01/10	Venture Capital	First Round of Funding	SIDBI Limited	0.00
Asmitha- Rabo India
05/01/10	Venture Capital	Second Round Of Funding	Rabo India Finance	35.00
Asmitha Microfin - BlueOrchard Private Equity Round 2
02/09/09	Venture capital		BlueOrchard Private Equity Fund	10.22
Asmitha Microfin - BlueOrchard Private Equity Round 1
13/10/08	Venture capital		BlueOrchard Private Equity Fund	5.30

Recent Transactions In The Sector

Date	Type	Buyer	Target	Size	State
01/09/10	Venture Capital	Lok Capital LLC	Aavishkaar India Micro Venture Capital Fund	3.73	Completed

19/08/10	Venture Capital	Canaan Partners India	Equitas Micro Finance India Private Limited	9.73	Completed

06/08/10	Private Equity	Looking For	Bandhan Financial Services Private Limited	21.60	Planned

05/08/10	DEBT		Ujjivan Financial Services Private Limited	10	Completed

Profiles

Name	Promoters	Office	Competitor	Website
Company
Asmitha Microfin Limited			Saija Finance Private Limited Asirvad Microfinance Private Limited

SIDBI Limited

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