Financial Daily from THE HINDU group of publications
Wednesday, Mar 29, 2006
Financial Daily from THE HINDU group of publications Wednesday, Mar 29, 2006 |
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Money & Banking
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Venture Capital Industry & Economy - Rural Development SKS Microfinance gets Rs 11-cr funding Our Bureau
Hyderabad , March 28 In one of the largest investments in microfinance in the country, Mr Vinod Khosla, along with other social venture capitalists, the Small Industries Development Bank of India and SKS' borrower community, made a Rs 11 crore ($2.5 million) investment in SKS Microfinance today. SKS, which provides financial services to the poor, will use the investment to access commercial debt and scale out reach from its current base of 2,00,000 clients to 7,00,000 clients in 2006-07, according to a press release. Of the Rs 11-crore ($2.5 million) investment, Mr Khosla of Khosla Ventures and Partner in Kleiner Perkins has contributed Rs 2.1 crore ($470,000) while technology entrepreneurs Mr Ravi Reddy and Mr Sandeep Tungare, co-founders of Vistaar Technologies, have contributed a combined Rs 2.1 crore ($470,000). The Unitus Equity Fund (UEF) has also invested Rs 2.1 crore ($470,000). The UEF is managed by a subsidiary of Unitus, a Redmond, Washington-based global microfinance accelerator. In addition, SKS borrowers have increased their current investment from Rs 2 crore ($450,000) to Rs 6.5 crore ($1.5 million) and SIDBI has expanded its current investment from Rs 50 lakh ($112,000) to Rs 1 crore ($225,000). Founded in 1998, SKS serves close to 200,000 clients in over 3,000 villages spread across five States: Andhra Pradesh, Maharashtra, Karnataka, Madhya Pradesh and Orissa. It has a portfolio of $18 million. SKS deploys technologies to reduce operational and transaction costs. "This approach will enable SKS to serve its clients more effectively and achieve its ambitious goals," said Mr Reddy, a supporter of SKS since its inception in 1998.
More Stories on : Venture Capital | Rural Development
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