Bangalore-based micro-finance company Grameen Financial Services (Grameen Koota) is reportedly in talks with a few financial institutions to raise around $10 million capital.
According to media reports, the company may raise the fund through private equity investors. It may be recalled that Grameen Koota raised capital earlier from Aavishkaar Goodwell, MicroVentures and Incofin.
During 2012-end, the micro-finance institution (MFI) raised capital through the NCD route. Grameen Financial Services received a sanction of $4 million of subordinated debt from Global Commercial Microfinance Consortium II BV, Netherlands, a fund managed by Deutsche Bank.
The firm plans to focus on housing finance among the lower-income segment and in this regard it is finalising a business plan to improve access to affordable housing for the underserved lower-income households.
As part of its strategy, Grameen plans to cater to rural India and build market confidence in the commercial viability of lower-income segments. It is understood that based on a pilot project of this, Grameen Koota can consider setting up a stand-alone specialised housing finance company catering to lower-income segments, which will not only enable faster scale-up and greater outreach, but also open up avenues for long-term institutional refinancing for the institution.
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