October, 2011: Goodwell Update
September, 2011: Aavishkaar Goodwell, existing investor in Utkarsh Micro Finance Pvt Ltd (Utkarsh) has led the Series B round of investment in the Varanasi-based company.
May 5, 2011: Paga receives institutional investment from Goodwell West Africa
April 26, 2011: Goodwell at Microfinance Investment Summit, Geneva
April 19, 2011: Goodwell at SOCAP/Europe
April 12, 2011: Goodwell broadens its impact investment activities
January 27, 2011: Goodwell signs new Principles for Investors in Inclusive Finance
January 2011: Goodwell’s review of 2010 and preview of 2011
September 3, 2010: Aavishkaar Goodwell completes successful first exit from Equitas
August 31, 2010: Suryoday Microfinance raises INR 210 million equity from Aavishkaar Goodwell and Lok Capital
June 11, 2010: KfW and NMI Invest in Goodwell West Africa
May 10, 2010: Aavishkaar Goodwell invests in Belstar
March 9, 2010: Aavishkaar Goodwell seeks to raise USD 100 million
January 12, 2010: Aavishkaar Goodwell Invests in Shre Pathrakali Finance
October 2011: Goodwell Investments : Highlights
Goodwell invests in West Africa and India and expands its impact investment scope.
Goodwell Investments is pleased to send you an update of our activities and recent investments in the microfinance sector in India and West Africa, on our fund raising efforts and on the expansion of our team and range of impact investment activities.
Highlights:
- Goodwell West Africa invests in Pagatech in Nigeria and Nwabyagia Rural Bank in Ghana
Aavishkaar -Goodwell invests in the Series B round of investment in Utkarsh in India
- Confidence returning to the microfinance sector in India
Goodwell signs new Principles for Investors in - Inclusive Finance
Goodwell expands team with two partners: Bernadette Blom and Bob Assenberg
-Goodwell team active in fund raising and in expanding advisory business
Goodwell West Africa invests in mobile payments company Pagatech in Nigeria
In May, 2011, Goodwell West Africa announced its investment in Pagatech (Paga) - a mobile payments company based in Lagos, Nigeria.
With Paga, any person with a mobile phone or access to internet is able to send cash, purchase airtime credit, pay bills, pay retailers and perform a variety of other transactions. Paga operates via a nationwide network of dedicated agents, which include several hundred agents associated with DStv, the leading provider of multi-channel pay television in Africa, with whom Paga has an exclusive partnership. Paga is set to become the leading mobile payments company in Nigeria. Goodwell is proud to support the launch of this next generation microfinance provider.
Goodwell West Africa is the first foreign institutional investor ever investing in a Ghanaian rural bank
In Ghana, Goodwell West Africa has invested in Nwabiagya Rural Bank (NRB). NRB is one of the best rural banks in Ghana, and a community owned financial institution located in the Ashanti region with 7 branches across the region and over 90,000 clients. NRB offers savings and loan products in urban and rural areas to the economically active low-income earners and micro/small enterprises.
Aavishkaar Goodwell India has led the Series B round in Utkarsh Microfinance Pvt Ltd (Utkarsh)
In September 2011, Utkarsh has received INR 250 million (~USD 5.5 million) in series B funding. Aavishkaar Goodwell was the first to commit. Other investors included Norwegian Microfinance (NMI) and the World Bank-backed IFC. Currently, the MFI operates in 13 districts of Uttar Pradesh and Bihar. Utkarsh has 56 branches, over 57,000 active clients and a loan portfolio of INR 410 million (~USD 9.1 million). The investment will boost Utkarsh' growth plans.
Confidence returning to the microfinance sector in India
In India, confidence is returning to the microfinance sector after a regulatory crisis which started in the fall of 2010. At that time, the local government of Andhra Pradesh (the state with the highest concentration of microfinance activity in India) introduced harsh regulations that created serious disruptions for microfinance institutions (MFIs) operating in the state. The immediate effect was a near freeze on collections, triggering a liquidity squeeze as banks stopped lending to the sector.
In response to the crisis, the Reserve Bank of India (RBI) worked on a new regulatory framework for the sector. In May 2010, the RBI announced regulatory proposals for the entire MFI sector across India and issued policy guidelines to ensure continuation of bank's lending to the MFI sector. In July 2011, the Finance Ministry of India released a draft MFI Bill, providing a new regulatory framework for MFIs, including minimum capital requirements and stricter fair lending and transparency norms. When the new framework is implemented, the sector will be able to resume a moderate growth path with much more solid regulation and supervision.
The first signs of restored confidence are that bank lending is resuming gradually and equity investors needed to fuel the growth of the sector are also returning. We are confident that the events will prove to be growing pains, moving the sector in India from its start up phase of fast growth and focus on client numbers into a more mature phase of steady growth and focus on clients' needs.
Aavishkaar Goodwell's seven investments are spread across India, with two MFIs that have a large part of their portfolio in Andhra Pradesh; Share and Basix. Share has restructured its bank loans and Basix is in negotiations with banks and funders to deal with the effects of the crisis.
Goodwell signs new Principles for Investors in Inclusive Finance
In January 2011, Goodwell was among the first signatories of the Principles for Investors in Inclusive Finance in The Hague. The Principles are an initiative of a core group of Dutch investors, including Goodwell, and HRH Princess Maxima, the UN Secretary-General's Special Advocate for Inclusive Finance for Development. The group developed the Principles together with the United Nations-backed Principles for Responsible Investments (PRI) and in consultation with CGAP (Consultative Group to Assist the Poor) and several key industry players.
Goodwell expands its team with two partners: Bernadette Blom and Bob Assenberg Bernadette Blom and Bob Assenberg joined the team in April 2011, while Sophie Vossenaar stepped down. Bernadette Blom was director and co-founder of Corporate Connect, a financial advisory firm with a focus on emerging markets and alternative products. In the last 9 years, Corporate Connect has advised various investors and social investment funds on strategic issues, deal structuring and fund raising. Client projects included setting up the TCX Fund for FMO and the Medical Credit Fund for PharmAccess.
Bob Assenberg worked at Triodos Bank where he managed a microfinance fund and a number of equity funds for renewable energy, both in Europe and developing countries. Prior to Triodos Bank, Bob gained operational management experience in microfinance and SME-banking as General Manager at ProCredit Bank in Bosnia and Herzegovina.
Goodwell advisory business taking off
Goodwell advises its clients on sustainable business solutions within the impact investment sector. We focus on overall strategic issues, deal and fund structuring, fund raising and investment management. We co-ordinate the whole financing advisory process from start to finish and act as a 'true partner' to our clients in this process. Our new client projects include: a feasibility study for KfW with regard to energy projects in Africa, a strategic scan and structuring of an investment vehicle for an affordable housing initiative and a business plan review for an energy initiative in East Africa.
Goodwell raising funding for investments in West Africa and India
Our investment companies investing in West Africa and India are still open to investors, and the team is actively searching to attract funding to fuel the growth in India and Africa. We already have some EUR 50 million in commitments from new and existing investors. Over the next 6-9 months we hope to raise an additional EUR 30-50 million from family offices, institutions, funds-of-funds and social investors in Europe and the US. Our offering is interesting for professional investors as we are one of the few equity teams in the sector that have a track record through the entire investment cycle (ie including exits) with on the ground investment teams, and we have started investing already from our existing commitments so investors can step into an existing portfolio and active pipeline.
Meet Goodwell team at TBLI and other conferences
The Goodwell team continues to be very much involved with impact sector initiatives, which results in speaking at - and attending conferences as well as acting as advisor, board member and sparring partner on several initiatives, working groups and think tanks. In the next few months you can meet Goodwell team members at the TBLI conference on November 10-11 in London (www.tbliconference.com), the Global Microcredit Summit on November 14-17 in Spain, Super Return Africa on November 28-30 in Nairobi and the Microfinance India Summit on December 12-13 in New Delhi.
September 2011: Aavishkaar Goodwell, existing investor in Utkarsh Micro Finance Pvt Ltd (Utkarsh) has led the Series B round of investment in the Varanasi-based company.
Utkarsh Micro Finance Pvt Ltd (Utkarsh) has received INR 250 million in series B funding, led by Aavishkaar Goodwell. Goodwell Investments and Aavishkaar India are investing INR 60 million, Norwegian Microfinance invests INR 150.8 million and the World Bank-backed IFC invests INR 30.2 million and it is stated that the funds raised will be utilised to set up 20 branches in Bihar. Currently, the MFI has 6 branches in the state.
A registered Non-Banking Finance Company (NBFC), Utkarsh currently operates in 13 districts of Uttar Pradesh and Bihar. It has 56 branches, over 57,000 active clients and a loan portfolio of INR 410 million.
"The investment of INR 250 million is going to boost our growth plans. It has come at the right time as the sector has started growing once again. It is also noteworthy that our existing investors AG are participating in this round, strongly indicating their confidence in the sector and in Utkarsh. We're also very grateful for IFC's continued support. Another important aspect is that all our investors have a strong bent for social sector and truly believe in double bottom-line approach. We strongly believe that this investment will facilitate further penetration of microfinance in the most underpenetrated geography in the country." said Govind Singh, MD and CEO, Utkarsh.
Back to top
May 5, 2011: Paga receives institutional investment from Goodwell West Africa Lagos/ Hilversum, May 5, 2011 – Goodwell West Africa, a microfinance investment vehicle co-managed by investment manager Goodwell Investments
and Alitheia Capital in Nigeria, announced today its investment in Paga – a mobile
payments company based in Lagos Nigeria.
Paga is a pioneering mobile money service launched in Nigeria in February 2011,
after receiving approval from the Central Bank of Nigeria. With Paga, any person
with a mobile phone or access to the internet is able to send cash, purchase
airtime credit, pay bills, pay retailers and perform a variety of other transactions.
Paga operates via a nationwide network of dedicated agents, which include
several hundred agents associated with DStv, the leading provider of multi-
channel pay television in Africa, with whom Paga has an exclusive partnership.
Paga's mission is to deliver innovative and universal access to financial services
for those underserved or excluded, especially payments and savings via the
mobile phone. Their approach to mobile payments is a multi-stakeholder one
- Paga is available on all mobile networks and is delivered to customers in
collaboration with strong local banks (including micro-finance institutions),
retailers and various other private and public sector organisations.
Goodwell Investments is an impact investment firm with a focus on access to
finance and sustainable development. It started operations in 2006. Since its
creation, it has focused on microfinance equity investments in two regions: India
and West Africa. In West Africa, Goodwell works in partnership with Alitheia
Capital based out of Lagos.
Els Boerhof, Partner at Goodwell: "Our fund was founded on the principal belief
that improving access to affordable financial services for people at the 'Base of
the Pyramid' contributes to sustainable development. This can best be achieved
by developing and scaling up entrepreneurial institutions aimed at banking the
unbanked. We believe that Paga will achieve a substantial social return as well as
an attractive financial result. Providing the poor savings and remittances via the
mobile phone makes access to these financial services cheaper, as expensive
bank branches are not needed and many people do have a mobile phone
nowadays in Nigeria."
Tokunboh Ishmael, CEO of Alitheia: "We seek investments that not only provide
financial impact but also social impact. Paga provides this double impact through
its innovative platform, which facilitates financial inclusion by taking relevant
financial services to the doorsteps of millions of Nigerians. We are very confident
in the Paga team, in its bold vision and look forward to working closely to achieve
our mutual objectives."
Tayo Oviosu, Founder and CEO of Paga: "Goodwell and Alitheia bring a great
wealth of international and local experience which will further strengthen our
ability to achieve our vision as a company. We are strongly committed to bringing
quality financial services to all Nigerians and truly believe that Paga will change
the life of the average person for the better."
April 26, 2011: Participation of Goodwell in the Microfinance Investment Summit, Geneva Edition
On july 5th, Goodwell will participate in the sixth edition of the Microfinance Investment Summit. This year, the conference will take place in Geneva. Bernadette Blom will be speaking on behalf of Goodwell Investments. For more information see the Microfinance Summit website.
April 19, 2011: Goodwell will participate in Socap/Europe 2011
On May 31, Goodwell will participate in SOCAP/Europe. This year, SOCAP will take place in Europe
(Amsterdam) for the first time. Wim van der Beek will hold a plenary session concerning Impact
Investments, named: 'Moving to the mainstream'. For more information see the SOCAP website:
April 12, 2011: Goodwell broadens its impact investment activities
Bernadette Blom and Bob Assenberg appointed as partners
Hilversum, 12 april 2011
Goodwell Investments has announced that it will expand it's scope of activities within the impact investment sector. The firm has developed microfinance investment companies for India and West Africa with a total committed capital of around $ 70 million which it manages in joint ventures with local teams. Goodwell's portfolio companies have provided over $ 1.2 billion in small loans to morethan 6 million families. Building on the firm's successful roll-out over the last five years Goodwell is expanding its investment and advisory activities within the microfinance field and other impact investment sectors, such as SME finance, water and sanitation, health care and renewable energy. Goodwell is a partner-owned firm and has welcomed two new partners, Bob Assenberg and Bernadette Blom, who will add significant strength to Goodwell's expansion.
Bernadette Blom is the co-founder of Corporate Connect, a financial advisory firm with a focus on emerging markets and alternative products. Bernadette continues the advisory activities of Corporate Connect within Goodwell. In the last 9 years, Corporate Connect has advised various investors and social investment funds on strategic issues, deal structuring and fundraising. Client projects included setting up the TCX Fund for FMO and the Medical Credit Fund for PharmAccess. Prior to Corporate Connect Bernadette worked at Accenture (Amsterdam) as senior strategy consultant for financial services and Bank of Tokyo Mitsubishi investment banking (London). Bernadette started her career at ABN AMRO Bank's investment banking global clients division (Amsterdam).
Bob Assenberg worked at Triodos Bank where he managed a microfinance fund and a number of equity funds for renewable energy, both in Europe and developing countries. Bob served on aninvestment committee and boards in the microfinance sector in India. Prior to Triodos Bank, Bob gained operational management experience in microfinance and SME-banking as General Manager at ProCredit Bank in Bosnia and Herzegovina.Prior to that Bob worked with FMO, focusing on investments in Asia. At the start of his career he worked eight years for multinational companies in the Netherlands and UK in the area of corporate finance, M&A and treasury management.
Wim van der Beek, founding partner of Goodwell comments: "We are very pleased to welcome Bob and Bernadette as partner in our firm. Both have impressive track records in the fields of impact investment and developmentfinance. They share our passion for professional and innovative finance solutions that have demonstrable impact and good returns. 2010 has been a good year for Goodwell, with significant growth in our funds and scope of activities. By effectively doubling our partner team we can capture the significant growth opportunities in our field while maintaining our high quality of work. Bob and Bernadette will both contribute to the further expansion of our microfinance activities. In addition, Bob will broaden thescope of our impact investing activities especially in the fields of renewable energy and SME finance and Bernadette will expand Goodwell's advisory activities, where we see an increasing interest from likeminded parties that want to tap into our impact investment expertise and experience."
January 27, 2011: Goodwell signs new Principles for Investors in Inclusive Finance
Goodwell Investments and 39 other global investors were the first to sign the Principles for Investors in Inclusive Finance in The Hague on 27 January 2011. The Principles are an initiative of a core group of Dutch investors, including Goodwell Investments, and HRH Princess Máxima, the UN Secretary-General’s Special Advocate for Inclusive Finance for Development. The group developed the Principles together with the United Nations-backed Principles for Responsible Investments (PRI) and in consultation with CGAP (Consultative Group to Assist the Poor) and several key industry players.
Els Boerhof, Partner at Goodwell Investments and a member of the working group: “the objective of signing these Principles is to emphasize Goodwell’s commitment to fair treatment and the protection of the interests of the ultimate client in inclusive finance—low-income households and small businesses in emerging markets- who are often disadvantaged by asymmetries in financial knowledge, power, and influence. We can only have true and long-lasting social impact with our investments and achieve sustainable financial returns if the financial services provided to the target groups are adequate and fair”.
The Principles do not only deal with client protection , fair treatment and transparency but also promote the offering of a wide range of financial services (including savings and insurances) to low income households, to cater for their varied needs. The Principles further describe how investors could behave responsibly in their dealings with their investees and they stress the importance of sustainable and balanced returns.
The signatories committed themselves to implementing these Principles and to promoting them in the market and among peer networks in order to build global awareness, gain additional signatories and create a culture where adherence to the Principles is the norm.
More information:
The Principles for Investors in Inclusive Finance: Principles
Keynote address by HRH Princess Máxima of the Netherlands: Key note address
UNPRI press release: Press Release
January 2011: Goodwell’s review of 2010 and preview of 2011
At the start of a new year that promises to be full of exciting opportunities, the Goodwell team is pleased to share with you our plans for 2011 and look back at 2010. 2010 was a good year for Goodwell, with substantial growth in investor commitments (USD 68 mln) and in underlying outreach (6.5 mln families), with new high profile investors and new initiatives to promote responsible investment in microfinance. The year ended with the microfinance sector in India facing a crisis that highlights the need for responsible investors with a long term view. In 2011 we plan to expand our team, make a number of exciting new investments, expand our investor base and scope of activities, continue to promote responsible investments in the sector and organize a study tour to Africa.
Highlights of 2010:
- Investor commitments in our funds have more than doubled to USD 68 mln
-
We have welcomed KfW, NMI, ASN Bank, MN Services and many other new impact investors
-
Our investees now serve around 6.5 million families with a total USD 1.5 bln in microcredit
-
We contributed to responsible investment initiatives for the microfinance sector
- We have paid out our first investment proceeds to our investors
-
And we concluded the year with the microfinance sector in India facing a serious crisis.
Investor commitments grow to USD 68 mln
In 2010, Goodwell has weathered the storms of the global economic crisis and managed to grow its investor base. The total amount committed by investors to Goodwell’s investment companies has grown to almost USD 68 million. Together with our joint venture partners in West Africa and India we have managed to attract more than USD 40 mln in fresh commitments from existing and new investors. In June 2010 Goodwell West Africa completed its second closing at almost EUR 16 mln. In December 2010 we launched our second India fund, again in joint venture with the Aavishkaar team. (see below) The target fund size is USD 80 mln of which some USD 30 mln has been raised.
KfW, NMI, ASN Bank, MN Services and others join our investor base
In 2010 we welcomed new investors from the development finance, institutional and private investment sectors. In our West Africa fund the German development bank KfW and the Norwegian Microfinance Initiative (a public-private investment fund) joined our global investment company Goodwell MDC II backed by the existing group of investors. During 2010 we also attracted new investments in Goodwell MDC II from ASN Bank’s venture capital fund and from family offices as well as follow–on investments from Dutch Microfund and a pension fund managed by MN Services. Our second India fund received new investments from Danish microfinance public-private partnership of IFU and a follow-on investment from IFC, the investment arm of the World Bank.
We are very pleased with the commitments from these new and existing investors, as their participation is a sign of trust in our ability to support business solutions that improve the lives of the underserved in the Base of the Pyramid.
Social impact and financial value creation
It is Goodwell’s ambition to realize “benefits of scale”: substantial social impact and attractive financial returns. The 7 microfinance institutions in which we invested have grown successfully and now reach around 6.5 million families, with a total loan portfolio of some USD 1.5 billion. Our investees have also been engaged in initiatives to better serve the needs of their clients and improve impact. We have worked with them on observing responsible lending practices and client protection principles and supported non-financial programs (e.g. health care, education).
On the financial return side: in 2010 we made a first (partial) exit, enabling us to return our first investment proceeds to our investors well ahead of plan and well above target social and financial returns.
New investments in India
In 2010 we invested in Belstar, the microfinance arm of the Hand in Hand Group, which operates an integrated livelihood finance model through self-help groups. In 2010 we also made follow-on investments in start-up MFI’s Suryoday, focused on underserved urban clients, and Utkarsh, which focuses on underserved areas in eastern India. Both are new generation MFIs founded by experienced financial sector professionals.
New investments in Ghana and Nigeria
After the second closing of Goodwell West Africa in June 2010 at EUR 16 mln, we have moved into full investment mode in Ghana and Nigeria. The teams of Alitheia Capital in Nigeria and JCS Investments in Ghana, led by ‘Tokunboh Ishmael and Patricia Safo have worked hard on converting pipeline prospects into real deals. Throughout the year we have worked intensively to prepare the first investment deals. Four transactions have been approved by the investment committee and are now in execution stage. We hope to announce our first investments in West Africa within the next few months.
Successful launch of Aavishkaar Goodwell India MDC II
Our first Indian fund Aavishkaar Goodwell India MDC demonstrated our investment team’s capability to execute the investment mandate to build a balanced portfolio of start-up and growth stage investments and to add value to the investee companies. In December 2010 we have launched its successor fund, with a target size of USD 80 million of which some USD 30 mln has already been raised. In the wake of the recent crisis in the MFI sector in India (see below), we are very pleased that the investors in this fund have demonstrated their commitment to our strategy. Part of the strategy of the fund is to invest in the geographic expansion of the sector outside the states where microfinance is concentrated now.
Sector initiatives and events
The Goodwell teams have actively contributed to a number of sector initiatives on promoting responsible lending and investment in microfinance. One of these is led by HRH Princess Máxima of the Netherlands in her role of UN Advisor for Inclusive Finance and will be officially launched in January 2011. We have organized two invitation-only events for professional investors to raise awareness about responsible investment in the MFI sector, attended by some 50 people in total.
In India our joint venture partner Aavishkaar has contributed to two sector initiatives endorsed by a number of leading MFIs: MFIN, the new industry association of for-profit MFIs and a credit information bureau (Alpha) to address multiple lending situations.
Aavishkaar team wins G20 award for innovations in small business finance
The Aavishkaar team has received an award for its SME fund at the G20 summit in Seoul. The prestigious award will boost its plans to launch the second Aavishkaar SME fund in 2011.
Growing pains in microfinance sector in India
In October 2010 the local government of Andhra Pradesh (the state with the highest concentration of microfinance activity in India) introduced harsh regulations that created serious disruptions for microfinance institutions operating in the state. The immediate effect was a near freeze on collections, triggering a liquidity squeeze as banks stopped lending to the sector.
In response to the crisis the Indian central bank (RBI) is working on a new regulatory framework for the sector, which is expected to raise the bar regarding responsible lending practices. The crisis will affect the growth prospects for the sector, and will also lead to lower valuations. Although we take them very seriously and do not underestimate the effects, we are confident that the events will finally prove to be growing pains, moving the sector in India from its start up phase of fast growth and focus on client numbers into a more mature phase of steady growth and focus on clients’ needs.
Renewable energy project with Shell Foundation
In 2009 we obtained a mandate from Shell Foundation to design a financial solution for the distribution of new generation cooking stoves in India. In 2010 we completed the work, which may have considerable impacts both in cutting emissions and reducing health problems for millions of families. The Goodwell work on this project has been recognized by the sector and we have subsequently been asked to co-chair the Finance and Investment working group of the Global Alliance for Clean Cookstoves, together with Morgan Stanley. This alliance is a public-private initiative led by the United Nations Foundation.
Water and sanitation project moves to implementation phase
Our Flows program seeks to create and fund business models for sustainable and scalable water and sanitation solutions for India’s poor, using linkages to microfinance. The first two stages of research and design have been been completed, for which we received funding commitments from FMO and Cordaid. The program has now moved into the implementation phase.
Expansion of our investment teams
In our Dutch team we recently welcomed Leonie Haakshorst to manage fund administration matters. She has a background in rural business development and financial management, inter alia at a fair trade company and at the Dutch development organisation ICCO. She will be in charge of connecting the streams of information and money between our more than 30 investors in our 5 investment companies and their investees through our investment teams in 4 countries.
In 2010 the team of our partner in India Aavishkaar has grown to 15 persons strong, in Ghana the JCS team to 5 people and in Nigeria the Alitheia microfinance team to 3.
Preview 2011
Milestones and plans for 2011
- Expand our team at senior level
- Deploy the money raised in 2010
- Invest in branchless banking, savings and remittance and other exciting new investments
- Form new alliances to expand our investor base and scope of activities
- Continue to promote responsible investments in the microfinance sector
- Organize our first study tour to Africa for investors
Expansion of the team
We plan to expand our team in The Netherlands at senior level – you may expect our announcement on this exciting news in the first quarter of 2011.
New investments in savings and remittances and branchless banking
The pipeline in India looks promising, with potential investments in established MFIs and start-ups, as well as in microfinance eco system businesses. In Ghana and Nigeria, we plan to invest in exciting opportunities in underserved areas and in new generation financial services providers. The investments will have a strong focus on savings and remittances and on reducing the cost of financial services through technology. Infrastructure in Ghana and Nigeria is often poorly developed, restricting access to finance and increasing the cost. Accordingly, the anticipated social impact of delivering financial services through technological innovations instead of bank branches will be high, as has already been demonstrated elsewhere in Africa and around the world.
New alliances to expand investor base and our investment scope
In 2011 we plan to complete the fund raising cycles for our funds for West Africa and India as well as our global investment company Goodwell MDC II. We plan to expand our investor base with new institutional investors, high net worth individuals and family offices, development finance institutions and specialized funds. As part of this growth we also hope to form new alliances and expand the range of investors as well as our investment scope.
Promote responsible investment
The Indian microfinance crisis shows the need for more responsible behavior of funders of the poor, and their funders – the investors in microfinance. Our team will continue to contribute to sector initiatives and will launch our own activities to promote responsible investment in our sector.
Microfinance study tour to Africa
In 2011 we will organize a 6-7 day study tour to West Africa, a combination of field trips and meetings with practitioners. The dates will be communicated as soon as possible.
September 3, 2010: Aavishkaar Goodwell completes successful first exit from Equitas
Aavishkaar Goodwell, a private equity fund for the microfinance sector in India, has made a partial exit from its investment in Equitas Microfinance.
Hilversum/Mumbai, September 3, 2010 - Aavishkaar Goodwell has completed its first exit from its microfinance private equity portfolio in India. Earlier this year, it reached an agreement with Canaan Partners to make a partial exit of its stake in Equitas Microfinance. The transaction has now been completed, and this week Aavishkaar Goodwell distributed its first investment returns to its investors.
Equitas is one of the most impressive success stories in microfinance in India. The microfinance institution started operations in Chennai in late 2007. In early 2008, Aavishkaar Goodwell was the first institutional investor, at a time when it was still difficult for microfinance start ups to find equity investors. Today, Equitas provides microfinance services to more than 1 million clients across five states in India, and has a total outstanding loan portfolio of more than USD 160 million. Founded by a team of experienced finance professionals under the leadership of PN Vasudevan, Equitas has won acclaim for its exceptional growth and groundbreaking innovations in the areas of transparency, efficiency, and governance. Equitas has become the fastest growing startup MFI in the world, and has shown leadership in client focus, transparency, responsible lending practices and sector building initiatives. Equitas has also ensured that client impact is in its DNA, by capping profits and reducing interest rates for its clients when possible. Equitas also allocates part of its profits for social programs such as schools, food security programs and eye camps.
Aavishkaar Goodwell’s first round investment in 2008 of USD 1.5 mln has been catalytic in mobilizing additional equity capital for Equitas amounting to USD 40 mln in three additional equity rounds from a mix of social funds and mainstream private equity firms.
Equitas CEO Mr. Vasudevan expressed his appreciation: “Aavishkaar Goodwell has been one of our earliest supporters and Equitas has always valued them for their fair and supportive approach to partnerships. They believed in us at a time when there were not many such people and not only invested in us but also gave us critical support, especially in areas like technology”.
Mr. Wim van der Beek, managing partner of Aavishkaar Goodwell commented: “We try to make a difference by supporting start ups and fast growing MFI’s and bringing them to the mainstream, while maintaining their social mission. When we invested in Equitas their plans were unparalleled, but we believed in the capabilities of Mr Vasudevan and his team to realize their plans. And they have achieved their ambitions, now touching the lives of over 1 million families and continuing to grow while serving their clients responsibly. With other mainstream investors on board, our initial task is completed. We are proud to be part of the Equitas success story, and will maintain a meaningful stake and continue to support their growth journey.”
The exit of Equitas is a first exit for Aavishkaar Goodwell, which started investing in 2007. The Aavishkaar Goodwell portfolio in India consists of 7 MFI’s, of which 3 are start ups. With this exit transaction, the fund’s managers have demonstrated that the social and economic value created in this sector can translate into an attractive investment proposition for equity investors seeking to realize significant impact and financial returns simultaneously. The exit to mainstream venture capital firm Canaan Partners underlines the confidence that mainstream investors have in microfinance as an investment worthy sector.
Aavishkaar Goodwell’s managers expect that the Equitas exit will accelerate their efforts to raise a second microfinance private equity fund for India of USD 80 mln, which is planned to have its first closing this fall. The fund is targeted at development banks, family offices, institutional investors and funds-of-funds. The team has hit the road with the new fund earlier this year, and has already received commitments from existing investors in the first fund.
August 31, 2010: Suryoday Microfinance raises INR 210 million equity from Aavishkaar Goodwell and Lok Capital
Suryoday Microfinance Pvt Ltd (Suryoday), a Pune-based MFI announced the successful closure of its Series B equity financing for a primary infusion of INR 175 million by Lok Capital, as well as from its existing investor, Aavishkaar Goodwell, two leading social investment / microfinance equity funds operating in India. As part of the current transaction, Lok has agreed to make a further infusion of INR 35 million, resulting in a total primary issuance of INR 210 million by Suryoday. Previously Aavishkaar Goodwell had invested INR 60 million as part of the company's Series A capital raise in March 2009.
Suryoday is a new-age, professional MFI that commenced its micro-credit operations in Pune, Maharashtra in May 2009. Starting from its base in Maharashtra, it aspires to spread out to other neighboring states in the medium term. It is led by a dynamic team of three ex-bankers - Baskaar Babu, Ganesh Rao and V. L. Ramakrishnan, with five decades of combined experience at institutions like HDFC Bank, GE Finance, Cholamandalam-DBS and Development Credit Bank - and driven by their vision of creating a socially responsible, world-class microfinance institution. In little over a year, Suryoday has reached out to over 50,000 borrowers across Maharashtra and Tamil Nadu with a network of 25 branches and implemented several innovative business practices in order to build deeper client relationships.
On the Series B investment by Aavishkaar Goodwell and Lok in Suryoday, R. Baskar Babu, Co-founder and CEO said: "We are pleased to partner with our existing investor Aavishkaar Goodwell again and Lok Capital for the first time. These partnerships will help us achieve our dream of creating a world class financial services company for the economically challenged women. We want to grow this venture with continuous focus on making a very positive economic and social impact on our customers' households."
'As an early stage investor, Aavishkaar Goodwell has always prided itself in working with the dynamic leadership team at Suryoday. Our continued participation in the current round signifies our belief in this team ability to deliver exceptional social and financial outcomes to economically excluded disadvantage communities in India" said Vineet Rai, Managing Partner, Aavishkaar Goodwell.
Venky Natarajan, Managing Director of Lok Capital added: "Lok is very pleased to be a partner of Suryoday, one of the best managed MFIs in India, with a robust business model and unique innovations in audit and customer service, and looks forward to working with the company to achieve the next level of scale and impact."
June 11, 2010: KfW and NMI Invest in Goodwell West Africa to support growth of microfinance in Ghana and Nigeria
Goodwell West Africa announced today that it has received commitments from KfW (Euro 8 million) and the NMI Frontier Fund (Euro 1.6 million). This private equity company will invest in microfinance in Ghana and Nigeria. Goodwell West Africa has now completed its second closing at Euro 16 million.
In Ghana and Nigeria, a large share of the population is financially excluded or not served by formal or high-quality financial service providers. The financial infrastructure to reach these groups is lacking or inadequate in both countries. The objective of Goodwell West Africa is to build this financial infrastructure by investing in a variety of microfinance institutions (MFIs) in Ghana and Nigeria. The company will invest primarily in established MFIs with potential for high growth and transformation, as well as in emerging and early-stage MFIs that need financial and professional support to develop and grow rapidly.
Goodwell West Africa’s strategy is to provide a combination of growth capital, on the ground support to local MFI management teams, and access to the expertise and a global network of experienced microfinance practitioners. The company is managed by a partnership of investment managers including Goodwell Investments BV, Alitheia Capital and JCS Investments, based in the Netherlands, Nigeria and Ghana, respectively.
Karl-Heinz Fleischhacker, Head of Division, Financial and Private Sector Sub-Saharan Africa of KfW Development Bank: “With Goodwell West Africa MDC, we are happy to conclude our first investment under the Microfinance Initiative for Sub-Saharan Africa II, an initiative which aims at strengthening Sub-Saharan microfinance networks. For us, the partnership between Goodwell Investments BV and the local managers Alitheia Capital and JCS Investments is a strong value added. For German bilateral Financial Cooperation, both Ghana and Nigeria are focal countries for financial sector development and offer the potential to significantly increase access to finance for the economically active poor.”
Richard Weingarten, Managing Director of NMI: “We are pleased to make this investment in Goodwell West Africa and to be working closely with Goodwell in Nigeria and Ghana. These two countries are Focus Countries for the NMI Frontier Fund, and we believe that both markets have significant potential. We are also particularly pleased to be able to support the local management teams in Ghana and Nigeria and to thus help build local capacity for making microfinance investments.”
Els Boerhof, Partner Goodwell Investments comments: “Nigeria and Ghana are dynamic markets offering a wide range of opportunities for developing microfinance. We are delighted that KfW and NMI have recognised this and have given us the mandate to put their money to work to deepen the financial sector in West Africa. We are pleased to welcome these leading microfinance investors on board, and we are confident that this will inspire other professional investors to join our investor group as we expand the fund in the next year."
May 10, 2010: Aavishkaar Goodwell invests in Belstar
Aaviskaar Goodwell Microfinance Development Company is one of the new investors in Belstar Investment and Finance Pvt Ltd, a Chennai-based microfinance firm. The agreement was preceded by an agreement between Belstar and IFC, the private investment arm of the World Bank
Belstar is the microfinance arm of Hand in Hand, a nongovernmental organization engaged in reducing poverty by creating enterprises and jobs. Through Belstar, HIH plans to expand into a for profit MFI. The firm would initially look at expansion in Tamil Nadu, Karnataka and Pondicherry with a subsequent expansion into Madhya Pradesh, areas where HIH is also active. Belstar is registered as a non-banking finance company (NBFC).
Belstar seeks to help establish a sustainable microfinance operation for India’s poor in rural and semi-urban areas and reach as many as a million women in the next five years.
Belstar’s product offerings will focus on low-income households that are unable to access such services from commercial banks. Apart from microfinance, Hand in Hand provides training and advisory support to its women members engaged in micro-enterprises in India and helps them build linkages with larger corporations to make their operations more sustainable.
Percy Barnevik, Chairperson of Hand in Hand International, said: “In its efforts to strengthen and scale up its operations, Hand in Hand seeks to work with experienced partners that can provide technical and financial support. Aavishkaar Goodwell is one such key partner for us.”
March 9, 2010: Aavishkaar Goodwell seeks to raise USD 100 million for second fund
Aavishkaar Goodwell, a company that provides equity finance for microfinance institutions (MFIs), is attempting to secure commitments to raise USD 100 million for its second fund. The fund is expected to seek investments from current investors such as the International Finance Corporation, the investment arm of the World Bank; Blue Orchard, a private equity fund; Netherlands Development Finance Company (FMO), a public-private development bank; and Deutsche Bank, a German commercial bank. Besides microfinance, the fund will invest in technology related to social ventures and housing finance. Aavishkaar Goodwell’s first fund, which closed in May of 2008, raised USD 18.3 million.
By Christopher Maggio, Research Assistant
About: Aavishkaar Goodwell India Microfinance Development Company Ltd
Aavishkaar Goodwell India Microfinance Development Company Ltd is a for-profit business development company that provides equity finance and support to entrepreneurial microfinance organizations in India. Aavishkaar Goodwell is building a portfolio of USD 25 million in 30-40 microfinance start-ups and 8-10 fast growing institutions. For microfinance start-ups, Aavishkaar Goodwell partners with the IntelleCap financing program. The franchising program aims to reach out to 10 million clients and add USD 1 billion of outstanding loans by 2010. Aavishkaar Goodwell is a Indian-Dutch joint venture. The investment team in India invests alongside the team that manages Aavishkaar India Micro Venture Capital Fund. The Dutch microfinance private equity company Goodwell Microfinance Development Company is the lead investor in Aavishkaar Goodwell, along with development financial institutions and commercial banks, including the Netherlands Development Finance Company (FMO), the International Finance Corporation, and Deutsche Bank.
January 12, 2010: Aavishkaar Goodwell Invests in Shre Pathrakali Finance "Utkarsh"
Aavishkaar Goodwell (“AG”), a specialized equity fund dedicated to supporting Indian MFIs, has recently concluded its equity investment in Shre Pathrakali Finance for a significant minority stake.
Shre Pathrakali Finance Co. Pvt Ltd (SPFCL) is a greenfield MFI operating under the brand name of “Utkarsh” that has commenced its micro-credit operations in September 2009 in Varanasi district, Uttar Pradesh – one of the most underserved regions for microcredit. Starting from UP, Utkarsh aims to become a significant player serving customers across Northern and Central India over the next 5 years. The MFI is led by Mr. Govind Singh, former business head for Micro-banking at ICICI Bank with over 20 years of experience spanning Micro-Banking, Rural & Agriculture finance, Retail & Corporate Banking and Retail Infrastructure amongst others.
Utkarsh is further strengthened by an experienced management team as well its long term operational partnership with Intellecash that has enabled it to launch on a strong foundation and reach out to 3000 clients through 7 branches in 3 months since launch. It is also unique in garnering support from professionals from varied walks of life, by way of token equity contributions in their individual capacities. The funding will be used towards early stage operational investments and capital adequacy requirements.
“Aavishkaar Goodwell is proud to partner with Utkarsh on account of its experienced management team, focus on the under-served Northern belt of country and association with IntelleCash. This partnership marks our 3rd investment in a greenfield MFI operation subsequent to Equitas and Suryoday Microfinance and our 2nd investment in an IntelleCash partner” said Vineet Rai, Managing Partner, Aavishkaar Goodwell, also representing AG on Utkarsh’s board.
Govind Singh, Founder & CEO of Utkarsh- “We believe we have an important role to play in supporting people who have skills but lack resources to improve their livelihoods. We chose to commence our operations from Eastern UP as it is one of the most underdeveloped regions with very low penetration of MFIs. It is great to have Aavishkaar Goodwell as a partner for not only providing timely seed capital support but also their contribution in shaping Utkarsh by involving themselves in strategic planning.”
About Aavishkaar Goodwell
Aavishkaar Goodwell India Microfinance Development Company Ltd is a for-profit business development company that invests in entrepreneurial microfinance organizations in India on a socially and commercially sustainable basis. It does this by developing and scaling up entrepreneurial microfinance organizations and integrating them into the mainstream financial sector. The company aims to realize “benefits of scale”—a substantial social impact and an attractive financial return. Aavishkaar Goodwell is a joint initiative of the teams behind Aavishkaar India, the world’s first for-profit microventure capital fund; and Goodwell, a Dutch microfinance investment company funded by social investors and pension funds.
December 15, 2009: Firms Conclude First Phase of $60m equity scheme for Nigeria, Ghana
By Moses Ebosele
Alitheia Capital, in collaboration with Goodwell Investments BV and JCS Investments, yesterday announced the first close of a $60 million (N9 billion) equity fund, focused on microfinance institutions (MFIs) in Nigeria and Ghana.
FMO and a number of Dutch high net-worth individuals and institutional investors invested in the fund, which will be managed by a partnership of investment managers based in Nigeria, Ghana and the Netherlands.
The objective of the Fund, according to its facilitators, is to selectively invest in entrepreneurial MFIs with the potential to generate attractive returns and positive social impact.
Its strategy is to provide a combination of growth capital for growing, early stage and transforming MFIs, on the ground support to MFI management teams, and access to the expertise and a global network of microfinance practitioners.
Besides investing in existing grown MFIs as well as those that have the potential for transformation, the Fund will invest in early-stage MFIs to enable the development of institutions based on best practices from an early stage and free from legacy issues.
Managing Director of Alitheia, Tokunboh Ishmael, said "the development is a milestone in the development of the Nigerian microfinance sector.
"The capital that Alitheia Goodwell can now inject into microfinance in Nigeria will help professionalise the industry, drive more rapid growth and ultimately go some way to lifting Nigerians out of poverty, in addition to securing financial returns for our investors."
A press statement made available yesterday, said the Fund has built a strong pipeline of high-potential investments and hopes to announce its first investment within the first quarter of 2010.
A partner at Goodwell, Els Boerhof, said "Nigeria is a dynamic market offering a wide range of opportunities for long term, experienced investors. We are delighted that our investors recognise this and have given us the mandate to put their money to work to deepen the financial sector in West Africa."
December 3, 2009: First Closing Goodwell West Africa MDC
Alitheia Capital, Goodwell Investments BV and JCS Investments have announced the first close of a USD 60 million equity fund focused on microfinance in Nigeria and Ghana. Investors include Dutch development bank FMO and a number of Dutch high net-worth individuals and institutional investors. Further financial details have not been released.
According to promoters of the fund, the goal of the fund is to “increase the outreach of commercial microfinance organizations and to provide a market rate of return to the investors.” Its strategy includes providing growth capital and managerial support to existing and early-stage microfinance institutions (MFIs). The fund expects to announce its first investment within the first quarter of 2010.
By: Stefanie Rubin, Research Assistant, MicroCapital.org
About Alitheia Capital:
Alitheia is an investment manager and advisor based in Lagos, Nigeria, whose mission is to broaden the ownership of businesses and real estate by enabling socially sustainable investing. Alitheia creates investment structures, provides project management and develops businesses. Its business services include fund management, project/business incubation and corporate strategy and development. No financial details or information about investors is available about Alitheia.
About Goodwell Investments BV:
Goodwell Investments, based in the Netherlands, started operations in 2006 and is a for-profit business development company. It invests in entrepreneurial microfinance organizations on a socially and commercially sustainable basis. Goodwell Investments is the lead investor in Aavishkaar Goodwell, a business development company for the microfinance sector in India. No financial details or information about investors is available about Goodwell.
About JCS Investments:
JCS Investments is a Ghana-based financial services company licensed by the Securities and Exchange Commission. It operates as a fund manager and financial advisor. No financial details or information about investors is available about JCS Investments.
About the Netherlands Development Finance Company (FMO):
The Netherlands Development Finance Company (FMO) supports financial institutions and countries through “loans, participations, guarantees and other investment promotion activities.” It was founded by the “Dutch government, private sector, employers and employee organizations.” It has access to government funds and therefore can take higher risks with their investments including long-term finance. It also specializes in local currency finance.
November 5, 2009: Arthur Arnold and Frits van der Have appointed on Supervisory Board of GMDC II
During a first Supervisory Board Meeting of Goodwell Microfinance Development Company II, held in Amsterdam on November 4 2009, Mr. Arthur Arnold and Mr. Frits van der Have were appointed respectively as Chairman and Member of the Supervisory Board. Mr. Arnold has had a longstanding career in banking, being CEO of Dutch Development Finance Bank FMO as last formal position. Mr. Van der Have is a seasoned venture capital and private equity specialist who has co-founded several biotechnology funds.
October 14, 2009: Goodwell launches Goodwell Microfinance Development Company II
Due to the success of the investments of Aavishkaar Goodwell in India, Goodwell decided to ring fence the portfolio in India and launch a second investment company to finance further expansion in India and start in Africa. On October 14 this microfinance fund – Goodwell Microfinance Development Company II - had a first closing at € 6.25 mln. FMO, Co-fund and the Dutch pension fund for the bakery sector are among the investors. The fund has a targeted volume of € 30 -50 mln and will invest 2/3 in India and 1/3 in West Africa.
July 20, 2009: Aavishkaar Goodwell Invests INR 45 million in Suryoday Microfinance
Aavishkaar Goodwell, a specialized equity fund dedicated to supporting Indian MFIs, has recently made an equity investment commitment of Rs. 45 million to Suryoday Microfinance (SMF).
Suryoday Micro Finance Pvt Ltd (SMF) is a new age professional MFI that commenced its micro-credit operations in Pune, Maharashtra in May’09, shortly after receiving its NBFC license from Reserve Bank of India. It is engaged in providing loans to women from Economically Weaker Sections, Below Poverty Line and the marginal poor who do not have access to traditional banking, with an objective to reduce poverty in its area of operation. Starting from Maharashtra, the MFI aspires to spread out to other states in the medium term. It is led by a dynamic team of three ex-bankers – Baskar Babu, Ganesh Rao and V. L. Ramakrishnan – driven by their vision of creating a world-class Microfinance Institution. Suryoday is arguably the first MFI in India to secure equity funding from an institutional investor prior to commencement of operations. . The funding will be used towards early stage operational investments and capital adequacy requirements.
“Aavishkaar Goodwell is committed to supporting early stage Microfinance institutions through its strategic partnership with Intellecash” said Vineet Rai - Managing Partner, Aavishkaar Goodwell. “We are excited about our partnership with Suryoday on account of its excellent management team with a strong social consciousness, focus towards under-served areas and their association with Intellecash” R Baskar Babu, Co-Founder & CEO of Suryoday Microfinance - “The support from Aavishkaar Goodwell has enabled us to get started on this venture. This partnership is helping us achieve our dream of creating a world class financial services company for the economically challenged women. We want to grow this venture with continuous focus on making a positive social impact”
For more details on Suryoday Microfinance, please log onto http://suryodaymf.com/
May 11, 2009: Aavishkaar Goodwell equity injection in Suryoday
Suryoday, a start up MFI operating out of Pune, has become the first IntelleCash Microfinance Network Programme partner to receive an equity injection from Aavishkaar Goodwell.
The innovative IntelleCash Microfinance Network Programme provides a full support package for MFI start ups and small scale MFIs. The programme is based on best practices and grooms MFIs in a relatively short time for operational excellence.
The new MFI has been promoted by experienced bankers. The basic system and processes including management have been put in place and the organization is all set to break the records of MF space.
Co-Founder Baskar Babu Ramachandran commented: “The venture is focused on micro finance and training poor women in our geographical area for enhancing their income levels and enable them build assets to improve their quality of living on a long term basis. Our team believes that the benefits accruing to our customers will percolate faster to other poor segments in a faster manner.”
Today, the company disbursed its first INR 300,000 (USD 6000) to 30 clients.
May 6, 2009: Goodwell, Alitheia Capital and JCS Investments Ltd open West Africa Microfinance Fund targeted at Euro 40 mln
The growth of microfinance in Nigeria and Ghana will get an impulse through a Euro 40 million fund, launched in a joint venture of Goodwell Investments from The Netherlands, Alitheia Capital from Nigeria and JCS Investments from Ghana.
The fund will provide long-term capital and active support to start-up and growth phase microfinance institutions in Ghana and Nigeria to kick start and accelerate their growth and build value whilst maintaining their social focus.
Earlier this month Alitheia Capital, Goodwell Investments and JCS Investments presented the results of an in-depth study on the potential for microfinance in Anglophone West Africa which was intended to focus industry attention on the region. The findings showed that there is tremendous potential for expansion of microfinance in the West Africa region. The challenges faced by MFIs in general were also recognized: inadequate financing, shortage of skilled personnel and an effective business model.
According to the Consultative Group to Assist the Poor (CGAP), Nigeria has a shallow financial sector with the majority of Nigerians lacking access to formal financial services. A recent survey showed that 74 percent of adult Nigerians (64 million people) had never been banked, only 5 percent of women have a bank account, and 86 percent of rural adults are unbanked.
The gap between supply and demand is equally large in Ghana, where only an estimated 4-5% of the population has access to formal financial services. The Goodwell West Africa Microfinance Fund will jump into this market gap and address part of the inadequate supply of financing and skills.
Goodwell Investments, based in the Netherlands, started operations in 2006 and is a for-profit business development company. It invests in entrepreneurial microfinance organizations on a socially and commercially sustainable basis. Goodwell Investments is the lead investor in Aavishkaar Goodwell a business development company for the microfinance sector in India.
Alitheia is an investment manager and advisor based in Lagos, Nigeria, whose mission is to broaden the ownership of businesses and real estate by enabling socially sustainable investing. Alitheia creates investment structures, provides project management and develops businesses. Its business services include Fund Management, Project/Business Incubation and Corporate Strategy and Development. No financial details or information about investors is available about Alitheia.
JCS Investments is a Ghana-based financial services company licensed by the Securities and Exchange Commission. It operates as a fund manager and financial advisor. No financial details or information about investors is available about JCS Investments.
April 29, 2009: Aavishkaar Goodwell shareholder in BASIX flagship company
Aavishkaar Goodwell India Microfinance Development Company (“AGIMDC”) has become a shareholder in Bhartiya Samruddhi Finance Limited (BSFL), the flagship company of the Hyderabad based BASIX group. AGIMDC invested alongside Lok Capital LLC and Small Industries Development Bank of India (SIDBI) in a INR 50 crore (USD 10 mln) transaction. Intellecap acted as BSFL’s advisors to the investment. International Finance Corporation (IFC), Shorecap International Limited, Stichting Hivos-Tridos Fonds, ICICI Bank Limited and HDFC had invested in the previous round of capital expansion in 2001.
Founded by Vijay Mahajan, well-known in the development space as a visionary and a pioneer in the Indian Microfinance industry, BSFL started its operations in 1996. Today, BASIX is one of the world’s leading providers of Integrated Livelihood Promotion Services and has impacted the lives of more than a million poor people through its unique holistic approach to livelihood promotion which uses microfinance, micro-insurance, agricultural, business and institutional development services in a mutually reinforcing manner. With a loan portfolio of Rs. 462 crore (USD 90 mln) and a customer base of over 1.5 million across BASIX and its affiliates for all services, BSFL operates in 15 states across India and expects to reach 10 million clients by 2014.
According to Vijay Mahajan, Chairman and CEO of BSFL, “this is a big milestone for us, as investors have reposed faith in the BASIX integrated livelihood promotion model over “cookie–cutter” microcredit. We are all set to now address our goal of reaching 10 million poor households by 2014.”
November 6, 2008: Study Tour India
In a 7-day study tour to Bangalore and Chennai, Goodwell showed a group of (potential) investors how microfinance works and how it affects people's lives. The group of about 15 people was taken on field trips to meet with clients of the microfinance institutions (MFI's) and had a chance to engage in discussions with the management of the organizations and to see their operations. In order to create a full picture and to place microfinance in India into context, presentations were held by the Dean of IIMB, Professor Shyamal Roy on the Indian economy, Ms Manju Geore, VP at Intellecap on the Microfinance sector in India, Mr Justin Oliver of the Centre for Microfinance on social impact measurement and Mr Ulhas Deshpande, MD of IntelleCash, on the rollout of a franchising package for MFI's. Two social entrepreneurs dinners were organized to create a dialogue between the participants of the tour with social entrepreneurs from the Bangalore and Chennai scene. Ms Rohini Nilekani (Arghyam) and Mr.Vijay Mahajan (Basix) were among the guests that made a speech.
September 8, 2008: Growth of Equitas
Goodwell investee company Equitas, which started operations in December 2007, crossed the 100,000 active client mark by Septemer 2008. Equitas is one of the fastest growing Microfinance institutions in India, with an outstanding loan portfolio of about USD 25 million. Repayment is 100% as on date.
April 15, 2008: Aavishkaar Goodwell Expands Portfolio
In the first quarter of 2008, Aavishkaar Goodwell became a shareholder in Bangalore-based Grameen Koota and in Chennai-based Equitas. Grameen Koota started 10 years ago as a non-profit entity, but has recently gained a for-profit status. Aavishkaar Goodwell has invested USD 2.3 mln (INR 92 million) in the transformed MFI that is operating according to the Grameen model. They have 44 branches and about 140,000 clients and plan to grow to 2 million clients over the next 5 years.
Aavishkaar Goodwell also finalized a USD 1.5 mln (INR 60 million) investment in Equitas. Equitas started in 2007 and has very ambitious growth plans. Their founder typically belongs to the second generation MFI entrepreneurs, with a corporate background in banking. They believe in the strength of operational efficiency and the smart use of IT. To this end they already show very promising productivity numbers. By the end of March they had 16,000 clients, and are working towards 450,000 clients by the end of March 2009.
Februari 25, 2008: Els Boerhof joins Goodwell
Els Boerhof is joining Goodwell as partner as of March 1st. Previously Boerhof was Manager of the Micro & Small Enterprise Fund MASSIF of FMO, the Dutch development bank. Wim van der Beek, founding partner of Goodwell comments: "We are very excited to welcome Els as a new partner. With her background in development banking she knows the microfinance sector very well. In the coming years, Els will play a significant role in taking Goodwell to the next level in our growth and will lead our efforts in expanding our investor base in the development finance sector."
September 5, 2007: Goodwell sponsors TBLI Conference
Goodwell is a network sponsor of this year's TBLI Conference in Paris, on November 15-16. The Triple Bottom Line Investing Conference is the leading international investment conference on ESG (Environment, Social and Governance) matters. Goodwell is represented in the workshop on Microfinance and investing in emerging markets.
September 5, 2007: Goodwell and FMO host Microfinance Seminar
Goodwell and FMO are hosting a seminar on Microfinance on Oct 1 2007, called "Towards the Mainstream - Innovations and new business models." The seminar showcases innovative developments in the microfinance sector, mainly from India, such as a new franchising model, smart cards, mobile banking and microinsurance. The event brings together selected participants from the development sector, mainstream finance and social investors, and is 'by invitation only'.
July 25, 2007: New Investments in Aavishkaar Goodwell
IFC, FMO and Deutsche Bank invest in Aavishkaar Goodwell to scale up microfinance in India.
May 15, 2007: Aavishkaar Goodwell partners with Share Microfin
India’s leading microfinance institution SHARE Microfin Ltd will receive equity finance and support from Aavishkaar Goodwell, the India focussed microfinance development company. Aavishkaar Goodwell will invest USD 2 million for a minority interest in SHARE MicrofinLtd., and its India based team of microfinance experts will work closely with SHARE’s management to help SHARE reach an additional 5 million customers over the next 5 years.
May 3, 2007: Aavishkaar Goodwell partners with Intellecash
Aavishkaar Goodwell partnership with IntelleCash Microfinance Franchise Package
April 26, 2007: Aavishkaar Goodwell sponsors Competition
Intellecap and Aavishkaar Goodwell Microfinance Development Company organized the 2007 Srijan Microfinance Business Plan Competition on 25th April 2007. The competition recognizes some of the brightest new ideas in microfinance, from across the globe.
