Hyderabad: Aavishkaar India Micro Finance Ltd has raised $6 million and plans to close a $10-million fund by early 2007, aimed at providing equity to micro finance institutions in the country.
The Mumbai-based fund, which currently handles a $1.5-million fund, also plans to raise additional funding and take its initial fund to $10 million by next year, also aimed at providing equity to MFIs and small businesses, which do not have access to other means of finance.
Aavishkaar has till now firmed up $6 million. Its investors include Goodwell Investments BV, Holland, which has pumped in $2 million, ICICI ($2 million) and FMO, another Dutch development financial institution. Aavishkaar Goodwell is also looking at tapping the IFC and other funds to expand its corpus.
Aavishkaar has funded about 9 small businesses so far. The Trustee of Aavishkaar, Arun Diaz, said social investors are eyeing India and are keen to partner local investors and communities that help their twin objective for a social cause. These investors are not looking at returns alone but are keen to work for a specific cause.
About 25 global investors are currently on a tour studying MFIs in the State and assessing their role in social lending.
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The effort is now directed to forge local partnerships and create a bridge and a network between the investing community in the US, Holland and India.