Venkatesh N, Managing Director of Samasta Microfinance expects smaller microfinance institutions (MFIs) to regain their financial position in 2013-14.
He expects recovery in the financial position of these MFIs to be driven by the renewed interest of banks and risk capital investors in the sector.
Samasta itself plans to raise up to $6 million (Rs 32.8 crore) in equity financing, and up to Rs 100 crore in debt. The Bangalore-based firm, which has an outstanding loan portfolio of Rs 50 crore, will use the money to expand into new geographies.
Compared to the year-ago period, banks are extending more credit to small MFIs at more favourable terms, Venkatesh said. The micro-lender had tried to raise capital in 2011 and 2012, but had failed to do so.
According to Abhishek Kumar, CFO at Utkarsh Micro Finance, the fund-raising environment improved a lot, with the checks and balances introduced by the Reserve Bank of India over the past few months.
The Varanasi-based MFI plans to approach the market after the second-quarter of the current fiscal as it looks to raise 100 crore from investors.
Utkarsh, which closed its Rs 20-crore round of equity financing in April earlier this year, is currently backed by Aavishkaar Goodwell, International Finance Corp and Norwegian Microfinance Initiative.
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