MICROCAPITAL BRIEF: Indian Microfinance Institution Bhartiya Samruddhi Finance Limited (BSFL) Raises $150m from Institutional Investors, Commercial Banks

Bhartiya Samruddhi Finance Limited (BSFL), an Indian microfinance institution (MFI) and member of the BASIX Group of companies, has reportedly raised INR 7 billion (USD 150 million) in debt and equity commitments from institutional investors and commercial banks, in what has been described as a “lifeline” by BASIX chairman Vijay Mahajan. BSFL will receive between INR 5 billion (USD 107 million) and INR 6 billion (USD 129 million) from unnamed commercial banks, with an additional INR 750 million (USD 16 million) from the Small Industries Development Bank of India (SIDBI) and INR 250 million (USD 5.3 million) from HDFC Bank Limited, an Indian commercial lender. The following five financial institutions will jointly invest a total of INR 1 billion (USD 22 million): International Finance Corporation (IFC), the private-investment arm of the World Bank Group; Matrix Partners, a US-based venture capital firm; Axis Bank, an Indian financial services company; Lok Capital, an Indian equity investment firm focused on microfinance; and the Hivos-Triodos Fund (HTF), a Dutch private-public partnership. On July 28, MicroCapital reported on BSFL's financial weakness including comments from Mr Mahajan that the MFI would not be able to... Continue reading here. Contact MicroCapital to receive a complete sample issue of the MicroCapital Monitor, the monthly microfinance newspaper.