Bhartiya Samruddhi Finance Limited (BSFL), a Livelihood Promotion Institution has announced that it has closed its Series C with Rs1.18bn ($ 26 MM) of equity. Matrix Partners India has invested Rs1bn as the lead investor in the funding of BSFL along with returning investors Hivos Triodos Fonds and Lok Capital, in a total transaction size of Rs1.18bn. BSFL is the flagship company of the BASIX Group, promoted by Vijay Mahajan.
Welcoming Matrix Partners, India to BSFL, Vijay Mahajan, Chairman of BSFL and BASIX said “Matrix with their long term investment horizons and an in-depth understanding of the MFI sector complement the BASIX mission of inclusive growth through sustainable livelihood promotion in India, with valuable growth capital. With this capital infusion, during the current fiscal year, we will double our credit portfolio to over two mn customers and Rs20bn in outstandings, while our micro-insurance and micro-pensions services will reach three mn, and our Agri/Business and Institutional Development Services one million, poor households respectively”.
Sajeev Viswanathan, Managing Director & CEO, BSFL said “This infusion of $ 26 M capital provides BSFL a very strong balance sheet thereby positioning us to leverage scale and enhance operational efficiency. This will have a direct positive impact on the cost to our customer and at this instance we are pleased to announce that a significant portion of our clients will benefit by an Annual Percentage Rate (APR) reduction of atleast 100 basis points (1%)” .
“As the pioneer of the Indian Microfinance industry, Vijay Mahajan needs no introduction and it is our privilege to partner in his vision of promoting livelihoods for India’s poor. Sajeev’s stellar leadership of BSFL makes us excited about the scale that BSFL will achieve in the coming years and the impact that it will have for India. Matrix has always believed that Microfinance companies need a broader approach beyond micro–credit and BSFL’s livelihood promotion focus is a perfect fit for us” added Avnish Bajaj, co–founder & Managing Director, Matrix India. With this investment, Avnish Bajaj will join the Board of Directors of BSFL.
Intellecap, a pioneer in providing investment banking services to Microfinance and other socially relevant businesses, acted as BSFL's sole advisor to the issue.
Source: India Infoline