SKS MICROFINANCE RAISES RS 147 CRORE IN 3RD ROUND FUNDING
Largest microfinance investment in India to date
• Reaffirms SKS status as the largest venture funded MFI in the world
• Funds will be used to accelerate growth plans
- January 30, 2008
SKS Microfinance Pvt. Ltd., one of the fastest growing microfinance company in the world, has announced the successful closure of a third round of funding in which it has raised Rs. 124 crores. The third round of funding is the largest microfinance investment in India till date. SKS Microfinance is the largest venture-backed microfinance institution in the world in terms of equity capital investment by venture capital funds.
Announcing the closure of the third round of funding, M. R. Rao, the Chief Operating Officer of SKS Microfinance said, “The closure of the third round of funding is essentially a proof-positive validation of the trust and belief of our investors in the SKS business vision and its growth potential.”
He added, “With a growth rate of nearly 170 %, we are already listed among the fastest-growing microfinance companies in the world having grown to over 1.5 million members with 650 branches across 15 states in India. Our aim is to target 5 million members by mid 2009. This infusion of funds will ensure that we continue to accelerate our rapid growth by reaching out and empowering maximum number of rural, semi urban and urban poor women to make them economically self reliant in a sustained manner.”
SKS Microfinance has already disbursed over Rs 1730 crores with a 99.8% on-time repayment rate. SKS has a presence in over 20,000 villages across 15 states in India with an employee base of 5800. the company is expected to increase the headcount to 15000 by March ’09. The company’s branch count is expected to touch 1560 by next fiscal.
The third round of investors include various trusts, UNITUS, Vinod Khosla, Infocom Ventures, SKS Capital, SIDBI, Tejas Ventures, Sequoia Capital, Yatish Trading, SVB India and Columbia Pacific.
In March 2006, SKS Microfinance created history with its first round of equity when it raised Rs.14 crore - the largest microfinance investment at that time and eclipsed this accomplishment in March, 2007 when it raised an additional Rs 53.62 crore in its second round of funding.
SKS works on three inter-linked principles to scale microfinance. This includes using a for-profit methodology to access capital, drawing on best practices from the business world to speed growth, and deploying technology to overcome high delivery costs. SKS blends this rigorous business approach with a strong social mission that includes ensuring that its members continue to hold a significant stake in the company and benefit from profits that the company earns.