Timeline: Capital inflow into Indian Microfinance sector in 2009

Microfinance Monitor, January 1, 2010 – Microfinance has reportedly recorded more than 15 deals in 2009 while some speculative deals like Share Microfin’s IFC deal and Spandana’s Temasak deal never came through.

Here is a timeline of the deals in the Indian Microfinance sector in 2009:

Jan. 21, 2009: Mauritius-based Valiant Mauritius Partners FDI invests $22 million in Hyderabad-based Spandana Sphoorthy microfinance institution.

March 9, 2009: Hyderabad-based SKS Microfinance raises Rs 25 crore ($5million) through the issue of non-convertible debentures (NCD) which were fully subscribed by Yes Bank, which was also the lead manager of the the issue. The bond has a tenure of one year and carries a coupon rate of 10.5 per cent annum.

April 29, 2009: Hyderabad-based microfinance institution Bhartiya Samruddhi Finance Ltd (BSFL), part of Vijay Mahajan-led Basix Group, raises $10 million from Lok Capital LLC, Aavishkaar Goodwell and Small Industries Development Bank of India (SIDBI).

May 22, 2009: SKS Microfinance raises Rs. 75 crore ($15 million), for the second time in less than four months, through an issue of 1-year NCD at a coupon rate of 10 per cent. The NCDs have been listed on the Bombay Stock Exchange (BSE). Standard Chartered India was the sole book runner and lead arranger for the Issue.
June 2, 2009: SKS Microfinance receives $10 million from general and life insurance firm Bajaj Allianz Life Insurance.
June 10, 2009: Another Hyderabad-based microfinance institution Spandana Sphoorty Financial, the second-largest microfinance firm, raises Rs 80 crore ($17 million) by issuing one year NCDs redeemable at a premium of 10 per cent. Standard Chartered Bank India has subscribed to NCDs.
June 22, 2009: Thrissur-based ESAF Microfinance
and Investments (EMFIL) raises Rs 12 crore from Dia Vikas Capital, an arm of Opportunity International Australia
June 22, 2009: Haveri-based Navachetna Microfin Services Ltd receives Rs 1.5 crore from a few high net worth individuals and IT professionals.
June 23, 2009: Grama Vidiyal Micro Finance Limited (GVMFL), a Tamil Nadu based microfinance institution, raises $4.25 million from MicroVest, Unitus Equity Fund and Vinod Khosla, through his non profit private foundation, Amar Foundation.
July 18, 2009: Pune based Suryoday Microfinance (SMF), a micro finance company led by three former bankers, receives an equity investment of Rs 45 million from Aavishkaar Goodwell India Microfinance Development Company, becoming the first MFI in India to secure equity funding from an institutional investor prior to the commencement of its operation.
July 24 2009: India Financial Inclusion Fund (IFIF) decides to invest an unspecified amount in Sonata Finance Pvt Ltd, based in Allahabad.
Aug. 11, 2009: Tamil Nadu-based Grama Vidiyal Micro Finance Limited (GVMFL) announces its plan to raise Rs 100 crore ($20 million) by way of non-convertible debentures (NCDs) over the next three months.
Aug. 25 2009: Hyderabad-based microfinance institution Spandana Sphoorty Financial Ltd obtains a loan of Rs 50 crore ($12 million) from Rabo India, an arm of the Dutch cooperative bank Rabo.
Sept. 2, 2009: Hyderabad-based Asmitha Microfin Limited raises Rs 50 crore from BlueOrchard Private Equity Fund in its second round of funding.
Sept. 11, 2009: Mauritius based venture fund Lok Capital LLC invests $1.5 million in Chennai-based Asirvad Microfinance Pvt Ltd.
Nov. 12, 2009: Accion acquires a 49.5 % equity stake in Bihar-based Saija Microfinance for Rs 2.5 Crore ($500,000).
Nov. 13, 2009: Belstar Investment and Finance Ltd, a Bangalore-based microfinance firm, reaches an agreement with International Finance Corporation (IFC) to raise $1.15-million fund. Belstar is the microfinance arm of Hand in Hand International (HHI).
Nov. 27, 2009: International Finance Corporation (IFC), the private investment arm of World Bank, announces it plans to put Rs 35 crore ($7 million-$7.5 million) in Rajasthan’s AU Financiers Pvt Ltd, an NBFC microfinance institution based in Jaipur.

Nov. 27, 2009 : IFMR Capital and Equitas Micro Finance have raised the first ever mutual fund investment into the Indian microfinance sector worth Rs. 480 million ($10.4 million).
Dec. 09, 2009: Bangalore-based Grameen Koota raises equity funding of Rs 27.5 crores ($6 million) from MicroVentures Investments (Luxembourg), MicroVentures SPA (Italy), Incofin (Belgium) and Aavishkar Goodwell (India).
Dec. 28, 2009: Kolkata-based Bandhan Microfinance completes its first round of equity raising worth Rs 50 crore ($10.7 million) from Small Industries Development Bank of India (SIDBI) amounting to 11 per cent stake in the MFI.