Kerala, Karnataka based MFIs raise funds

By Ruchika Sharma (VCCircle.com)

While ESAF Microfinance and Investments has raised Rs 12 crore, Navachetna Microfin Services has raised Rs 1.5 crore.

Two South based microfinance companies, ESAF Microfinance and Investments (EMFIL) and Navachetna Microfin Services Ltd, have raised Rs 12 crore and Rs 1.5 crore respectively.

Kerala based EMFIL has raised the amount by diluting a minority stake to Dia Vikas Capital, which is a 100% subsidiary of global microfinance and enterprise development services provider Opportunity International Australia. This was the company’s first round of fundraising.

Karnataka based Navachetna Microfin Services Ltd raised Rs 1.5 crore from a group of individual investors and IT professionals in its first round of fundraising

Sloka Capital, an advisory firm focussed on medium and micro enterprises, was the advisor for both the transactions.

EMFIL is based out of Thrissur, Kerala, and offers a host of services like credit, insurance, money transfer and micro-energy loan.

The company has a borrower base of over 230,000 customers across a network of 90 branches. It has a cumulative disbursement of Rs 401 crore.

The company aims to reach 1 million poor households by 2014. In April 2008, the company had transformed into a Reserve Bank of India (RBI) regulated Non-Banking Financial Company (NBFC).