North East focused MFI, RGVN Microfinance Limited raises INR 41.8 crore funding
Guwahati headquartered microfinance institution, RGVN (North East) Microfinance Ltd. (RGVNMFL), announced that it had raised INR 41.8 crore. Norwegian Microfinance Initiative (NMI) Fund III KS, Norway and Oikocredit joined the existing investors Dia Vikas Capital and SIDBI in this round of investment.
This investment round took place via exclusive financial advisory of Unitus Capital. Dia Vikas Capital get additional shares while SIDBI has converted its OCPS to equity in this round.
RGVNMFL is a North East India focused MFI (microfinance institution). Currently, it’s present in 5 states and its core products include loans for income generating activities through JLGs, larger individual loans for micro-businesses and subsidized loans for welfare purposes such as health and sanitation. Apart from this, the company also offers credit plus services, including insurance for both life and assets and trainings on vocational skills to support various livelihoods activities and building linkages with external agencies to meet client needs in different areas like financial literacy, education and health .
The company as on 31st March, 2014 had portfolio of Rs. 125 crore in its 107 branches spread across the five North Eastern states benefitting 166,623 numbers of clients.
Rupali Kalita, MD, RGVNMFL, said optimistically that this equity raise will help us to reach theunbanked population of North-East India. The company aims at taking its financial & development services to many more left our segments in the 8 Indian States of the North eastern Region.
All the investors are aligned with the company in terms of their vision and investments. The Norwegian Microfinance Initiative (NMI) is a strategic partnership between the Norwegian public and private sectors that will invest in microfinance institutions (MFIs) in developing countries and provide professional assistance and technical support for these institutions. Oikocredit is a worldwide cooperative and social investor in microfinance sector, fair trade organizations, cooperatives and small to medium enterprises. Dia Vikas Capital Pvt Ltd (a subsidiary of Opportunity International Australia) is a social investor to support the growth of Indian microfinance and partner with socially-focused MFIs, including start-ups, to operate in underserved areas.