Investment management firm Creation Investments, along with some other firms, provided equity capital of Rs 53.20 crore to the Bangalore-based microfinance institute Grameen Financial Services, popularly known as Grameen Koota.
Other firms that provided the funding include specialised fund management company Incofin and social venture capital fund MicroVentures.
The fresh fund infusion would help Grameen Koota achieve its target of reaching out to over 10 lakh poor and low income households. It would also strengthen in extending and expanding the loan operations to other neighbouring states, the microfinance institution (MFI) said in a statement.
For the past 13 years, the MFI has been catering to the credit needs of poor and low-income households and has provided these households with diverse financial and developmental services. It is mainly operational in Karnataka, Maharashtra and Tamil Nadu.
It may be recalled that recently Grameen Koota raised Rs 21 crore through unsecured, redeemable, non-convertible debentures (NCDs) from Global Commercial Microfinance Consortium II B.V., Netherlands, a fund managed by Deutsche Bank.
The microfinance industry has been in several controversies in the past couple of years. That has, however, not deterred private equity players and venture capital funds from investing in the sector.
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