Opportunity International Australia increases stake in ESAF Microfinance

Opportunity International Australia, has increased its stake in ESAF Microfinance and Investments (P) Ltd, through Delhi based Dia Vikas Capital, the 100% subsidiary of the parent company. ESAF Microfinance is Kerala’s largest microfinance organization with more than 4.5 lakh clients.

Through the new deal Opportunity International has increased its stake in ESAF by 6.31%. With this, the total equity capital base of ESAF has now crossed Rs 48 crore. Earlier in 2009, the Australian company bought around 18% of stake in ESAF for Rs 12 crore. “The new deal was aimed at generating capital for ESAF Microfinance in order to serve its clients more effectively” said K. Paul Thomas, Managing Director, ESAF Microfinance.

esaf private equity

K. Ranjini, Managing Director, Dia Vikas Capital, opined that they had decided to increase the stake based on the performance and the future plans of the company. Opportunity International, Australia is a global leader in providing micro finance and enterprise services.

Modeled on the lines of Grameen Bank, founded by Nobel Laureate Mohammed Younus, ESAF was launched in 1992 by its founder and Managing Director, K. Paul Thomas. ESAF’s objective is to create opportunities for identifying and developing the people’s ability by undertaking various developmental activities like micro enterprise development, human resource development and community development.

At present, ESAF Microfinance has a cumulative disbursement of loans worth Rs 1000 crores, apart from an outstanding loan amount worth Rs 207 crores. In 2009 and 2010 ESAF has won the Social Performance Reporting Award – Silver category, powered by Mixmarket, a monitoring agency based in the US. Moreover, it is the only Microfinance Company in Kerala to be graded ‘mfr4’ by Crisil ratings.

In addition to micro loans, ESAF Microfinance also provides micro insurance, health care, home, infrastructure and retail services for the poor. The company now has presence in 7 states in India, including the States of Jharkhand and Haryana in North India.

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