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Update: IFC, Existing Investors Invest In MFI Suryoday

June 18, 2014



Pune based MFI @SuryodayPrivate Limited has raised INR 270 Mn in a fresh round of funding from @IFC and existing backers, impact investment firms Lok Capital and @Aavishkaar_Goodwell Limited.

The funding which involved INR 150 Mn from IFC and INR 62 Mn each from the two existing investors would be taken to expand its network across the country.

The transaction was structured by advisory services firm Intellecap.

In Jan last year the company had raised INR 200 Mn in its fourth round of institutional funding, led by existing investors Aavishkaar Goodwell and Lok Capital.

The microfinance company, which has an gross loan portfolio of INR 3,450 Mn and a customer base of 3,01,000 had also raised INR 70 Mn from the Housing Development Finance Corporation ( HDFC) Holdings and HDFC Life.

Aavishkaar whose MFI portfolio includes Share Microfin Limited, Bhartiya Samruddhi Finance Limited, Equitas, Grameen Koota, @Utkarsh_MicrofinancePrivate Limited, Belstar Investment and Finance was the first investor in the MFI and had infused INR 45 Mn in the MFI in 2009. Then in the following year it co-invested with Lok Capital a total of INR 210 Mn.

Founded in 2008 by Baskar Babu, V.L. Ramakrishnan and Ganesh Rao, Suryoday has a cumulative disbursement of c.INR 8,500 Mn given out through its 78 branches spread across Maharashtra, Odisha;, Gujarat, Salem, Tamil Nadu, Karnataka and Rajasthan.

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IFC had disclosed its proposed investment in the company in April 2013 when it proposed to invest $11 Mn (c.INR 593 Mn) through a mix of a quasi-equity and senior debt through the External Commercial Borrowing route. Of the proposed investment the board had approved $8.78 Mn (c.INR 473.41 Mn )($6 Mn [c.INR 323.5 Mn]in loans and the remaining $2.78 Mn [INR 149.8 Mn]in equity.

IFC's Indian investee companies include, Vistaar Financial Services Private Limited, Janalakshmi Financial Services, Bandhan Financial Services, Au Financiers (INDIA), Magma Fincorp.

Seeing the revival from the AP crisis, the last six months have a seen a number of mid-sized micros credit organisations raise fresh rounds of, both, equity and debt funding. In April Aye Finance had raised an undisclosed amount of funding from Contrarian Drishti and Somak Ghosh; NeoGrowth Credit Private Limited had raised INR 100 Mn from @Aspada_Investment; Annapurna Microfinance Private Limited had raised $5 Mn in Series B funding led by Belgian Investment Company for Developing Countries (BIO) along with participation from existing investor Incofin IM's Rural Impulse Fund II.




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Source: DealCurry (India)


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