Industry sees 11 deals worth $178m in FY09
India-focused microfinance funds, which had seen investment cycles turn longer due to the global credit crisis last year, are hoping for robust fund flows this year, following improvement in global equity markets coupled with positive domestic sentiments after a strong election mandate.
Most of the microfinance funds are dependent on foreign investors for fund flows. As a result, these funds saw their investment cycles getting prolonged as the global financial crisis had made some new mainstream investors in the microfinance space a bit wary.
Microfinance institutions are those, which provide financial services to poor or low-income clients, including consumers and the self-employed. The microfinance sector accounts for close to Rs 1,00,000 crore disbursements.
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