Livelihood promotion Institution- BASIX’s flagship company Bhartiya Samruddhi Finance Limited, which is registered with the Reserve Bank of India (RBI) as a Non Banking Finance Company (NBFC), has raised Rs 100 crore through a Public sector bank. The development could instill confidence in Andhra based microfinance institutions (MFI)s whose business has been halted since mid October, after the state government passed an ordinance, regulating the sector.
First MFI in India to get funding from Banks after AP Microfinance Crisis
The fund however will be used by the company towards disbursements in other states. “Since it is a very critical situation, the bank would prefer not to disclose their name,” said an official. Around 28 per cent of the company’s business comes from Andhra Pradesh.
This apart, the Vijay Mahajan promoted company is also looking at raising around Rs 250 crore towards its fifth round of equity funding. “We are looking at appointing an investment banker. The deal should be finalised within a couple of months,” the official said. These funds should help the company move to newer states like Gujarat and Punjab, as well as strengthen existing services in Tripura and Bihar.
BASIX Livelihood Development Services
BASIX is working with over a 3.5 million customers, over 90% being rural poor households and about 10% urban slum dwellers. It is present in 17 states including Andhra Pradesh, Karnataka, Orissa, Jharkhand, Maharashtra, Madhya Pradesh, Tamil Nadu, Rajasthan, Bihar, Chattisgarh, West Bengal, Delhi, Uttarakhand, Sikkim, Meghalaya, Assam and Gujrat.
Earlier in August this year, it had raised Rs 75 crore by diluting equity to Caspian’s India Financial Inclusion Fund and Matrix partners. The other investors in Basix are International Finance Corporation, Hivos Tridos funds, Aavishkaar Goodwell, Lok Capital, Axis bank and SIDBI. The company provides services like agricultural and business development.