The Hindu : Andhra Pradesh / Hyderabad News : Microfinance firm sets record

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Tuesday, Nov 11, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Microfinance firm sets record

HYDERABAD: The Swayam Krishi Sangam (SKS) Microfinance Pvt. Ltd, on Monday announced the closure of a fourth round of equity funding by raising Rs.366 crore ($75 million), claimed to be the largest private equity investment to date in microfinance globally.

The Hyderabad-based SKSwill utilise the funds to accelerate outreach to eight million members in two years, from the present 3.3 million, Vikram Akula, founder-and chief executive officer , told press persons here. He said the fact that the investment had come during the global economic meltdown was proof of the confidence that investors had in SKS. Although the cost of funds had been increasing, SKS would not pass the burden on to its customers.

The micro finance firm’s average interest rate on advances was at 25 per cent a year, he stated. The company’s total equity now stood at Rs.650 crore. He declined to disclose the share of Sandstone Capital, the lead investor with $51.25 million.

Paresh Patel, founder and managing partner of Sandstone, said this was the first micro finance funding by the company.

Other investors are Kismet Capital and SVB India Capital Partners. Chandra Shekaran, one of the board members, unveiled the new logo of SKS.

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