Svasti Microfinance Private Limited ( www.svasti.in), a Mumbai-based start-up Microfinance company, has successfully closed its second round of equity funding at the end of March 2011. Through its subsidiary in Mauritius, BlueOrchard Private Equity Fund has invested Rs. 4.5 crores. Grameen Capital India acted as exclusive advisor to Svasti on this transaction. The funds will be used by Svasti to expand its branch operations and to develop innovative loan products to service the entrepreneurial low income population in Mumbai.
Founded with incubation support from the Michael & Susan Dell Foundation and Kotak Mahindra Investments Limited (a subsidiary of Kotak Mahindra Bank), Svasti transformed its operations into a non-banking finance company in September 2010 by raising Rs. 5.45 crores in its first round of equity funding from several investors including a few members of the Mumbai Angels, India’s leading group of angel investors.
Ms. Sarah Djari, Senior Investment Manager Asia, BlueOrchard Private Equity Fund, Mr. Srikrishna K Ramamoorthy, Grant Officer, the Michael & Susan Dell Foundation and Mr. Rajiv Dadlani from the Mumbai Angels are investor representatives on Svasti’s Board.
Speaking about the current investment, Sarah Djari, Senior Investment Manager Asia, BlueOrchard Private Equity Fund said “This investment is BlueOrchard’s second direct participation in the Indian microfinance sector, and allows our fund to support an innovative business model in the urban slums of Mumbai. I am personally very excited to partner with Svasti for its next development phase and much looking forward to collaborate with its management and existing shareholders”
P Arunkumar, Co-Founder and Director said “Svasti is very pleased to have BlueOrchard as an investor. BlueOrchard’s worldwide microfinance experience coupled with the backing of our existing investors will be of significant value as Svasti embarks on a growth phase”
B Narayanan, Co-Founder and Director said “BlueOrchard’s investment in the current environment where microfinance in India is going through a rough patch is a ratification not just of Svasti’s operational strengths and its capability, but also the robustness of the microfinance business model when fundamental principles are adhered to.”
About Svasti Microfinance
Svasti Microfinance Private Limited is a registered Non Bank Finance Company providing financial services to the entrepreneurial urban poor in Mumbai.Svasti began its microfinance operations in Mumbai in 2008 and today manages a loan portfolio of around Rs. 5.39 Crores, servicing around 8500 clients from its 6 branches across the city.