Swadhaar Finserve which is promoted by Veena Mankar and Haseena Vahanvaty provides small loans to the urban poor.It currently has 27 outlets across Mumbai, Baroda and Pune and plans to expand to new areas. At the end of the financial year 2010 , Swadhaar had a gross loan portfolio of Rs 19.5 Cr with a reach of 30,000 households.
Swadhaar FinServe Pvt Ltd – an urban focused MFI with headquarters in Mumai has raised Rs 27.5 crore in equity funding as it looks to expand its operations. The current round of equity raising included investment from a new investor MicroVest and existing investors which includes the promoters.
The existing investors of Swadhar Finserve who participated in this round are ACCION International, Unitus Equity Fund and Michael & Susan Dell Foundation.Grameen Capital India served as the sole advisor to Swadhaar Finserve for this round of fund raising.
The current equity raising is in addition to Rs 10 crore in equity that Swadhaar Finserve received from International Finance Corporation (IFC), the private investment arm of the World Bank.
Swadhaar Finserve hopes to espand to other states and emerge as a microfinance institution with a national footprint operating across multiple locations targeting a loan outstanding of over Rs 870 crore by March 2016 and a base of about 600,000 clients.Swadhar Finserve also plans to expand its operations into other low income states such as Rajasthan and Madhya Pradesh.
The current equity raising will help in accelerating the micro finance company’s expansion to new urban areas and at the same time improve it’s IT infrastructure and product development.