IFC, FMO, Deutsche Bank join hands for Microfinance growth in India

New Delhi, July 26 (UNI) The International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and Deutsche Bank today announced their joint investment in microfinance private equity company, Aavishkaar Goodwell to support the microfinance in the country.

The potential client base for microfinance in India is estimated at around 75 million households and is expected to help the launch of 60 greenfield microfinance organisations and expansion of 10 fast-growing microfinance institutions.

Aavishkaar Goodwell's goal is to support growth of the sector, bringing affordable financial services to underserved households and areas in India.

The company will provide equity capital along with providing help to build new microfinance organisations through innovative franchising concept.

The company will build up a 25 million dollar portfolio across India. Its investments include two million dollars in Share Microfin Ltd.

Aavishkaar Goodwell expects to invest about half of its portfolio in microfinance start-ups, as an equity partner in the microfinance franchise initiative, IntelleCash. This initiative aims to reach 10 million clients by 2011.

Partners in this program are ICICI Bank, the north-Indian microfinance organisation Cashpor, and the development finance advisory company Intellecap.

''Microfinance is a key component of IFC's financial markets strategy in India. To support projects that have a sectoral impact and reach multiple beneficiaries, IFC will invest in companies that support the emergence and growth of microfinance institutions,'' said IFC Director (South Asia) Paolo M Martelli.

UNI