Utkarsh Micro Finance may receive capital infusion from its existing investors in order to support its business expansion plan in the low-income states of Uttar Pradesh and Bihar.
International Finance Corporation (IFC), Aavishkaar Fund II and Norwegian Microfinance Initiative are the existing investors in the microfinance institution (MFI).
While IFC, a member of the World Bank group, plans to infuse around $700,000 through a rights issue, Aavishkaar Fund II and Norwegian Microfinance Initiative are planning to invest $1.7 million and $1.23 million respectively in the MFI.
In March, 2010, IFC had first invested in Utkarsh. Following the fresh round of funding, IFC’s total equity investment in Utkarsh will be about $2 million.
Govind Singh, MD & CEO of Utkarsh Micro Finance feels that this additional investment would enable the company to cater better to the two states.