In 2011, Intellecap raised USD 30 million for Bandhan, a Microfinance Institution (MFI) in India. The International Finance Corporation (IFC) was the sole investor in this transaction, and it was IFC's largest in India's microfinance sector.
Bandhan is currently the largest Indian MFI with an outstanding loan portfolio of USD 660 million. The Company provides loans, micro- pensions and remittance services to 3.8 million poor and low- income people across 18 States, including Low Income States such as Bihar, Uttar Pradesh and Jharkhand where poverty levels are the highest.
Intellecap successfully completed this financing in a particularly challenging environment when many equity investors were not investing in the Indian microfinance sector due to regulatory uncertainty. In addition, Intellecap was able to meet Bandhan's stated priority of bringing in investment from a Development Finance Institution like IFC.
Photo credit: Srinivas Rao