The Hindu Business Line : Equitas Micro raises Rs 50 cr

Chennai, Aug. 21 The Chennai-based Equitas Micro Finance Ltd has raised Rs 50 crore in the second round of capital infusion. MVA Ventures has invested Rs 25 crore, and Bellweather Microfinance Fund along with India Financial Inclusion Fund have jointly invested the remaining Rs 25 crore.

The funds will strengthen the capital base of the company, Mr P.N. Vasudevan, Managing Director, Equitas, told newspersons.

The capital infusion of Rs 50 crore is through issue of ‘Compulsorily Convertible Preferential Shares’ to be converted to equity by August 2009. Equitas now has Rs 65 crore of net worth, including the first round capital raised within eight months of the company commencing operations in December 2007. Aavishkaar Goodwell India Microfinance and Small Industries Development Bank participated in the earlier round of capital infusion, he said.

Growing Demand

Mr Vasudevan said the demand for microfinance in the country is estimated to be around Rs 2 lakh crore, but the supply is a meagre Rs 20,000 crore. Equitas aims to play a role to bridge this gap by providing affordable financial services to a large number of families that do not have access to loans from other sources.

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