Mauritius Fund invests in Ashirvad micro Finance, Chennai

A Mauritius-based venture fund has picked up

24 per cent stake in the Chennai-based Asirvad

Micro-finance Private Ltd., a company founded by

a group of promoters led by S.V. Raja Vaidyanathan,

an IIT and IIM alumni with close to three decades

of business and managerial experience.


Lok Capital LLC of Mauritius has invested close

to $1.75 million in the company for a 24 per cent

stake at an undisclosed premium. Asirvad, according

to Mr. Vaidyanathan, is focussed on lending to poor

women, who are engaged in regular income-generating

economic activities.

Since its inception in 2007, Asirvad has an outstanding

portfolio of around Rs. 35 crore. It has now a client base

of 75,000 women borrowers. Mr. Vaidyanathan said

Asirvad was hoping to drive the loan portfolio

up to Rs. 75 crore by 2010.


The company is now focussed on seven districts

in Tamil Nadu. Soon, it would spread its wings to

other parts of the State, he added. Asirvad has around

21 branches in the State with a staff strength of around

150 people. Following its investment into the company,

a nominee of Lok Capital has been inducted into the board

of Asirvad, which also has three nominees from the

promoter-family and two independent directors.


At the current equity base of around Rs. 7.40 crore, Asirvad

, Mr. Vaidyanathan said, had enough leeway to drive up

the business through borrowings.


Lok Capital is primarily focussed on investing

in commercially-oriented micro-finance outfits

in India. It has already invested in national micro-finance

institutions such as Spandana, Basix and Ujjivan.


“Lok Capital’s experience will go a long way in guiding

Asirvad to adopt best in class practices in all

areas of management,” Mr. Vaidyanathan said.