Madura Micro Finance Limited (MMFL), a leading Indian Microfinance Institution (MFI), has received a funding of Rs 22 Crores from the private equity investment firm Unitus Equity Fund L.P. (UEF). UEF makes strategic investments in high growth microfinance institutions and social enterprises and is managed by Elevar Equity LLC.
MMFL has been rated as one of the world's top microfinance institutions by Forbes Magazine 2008-Top 50 Microfinance Institutions. MMFL holds the distinction of being ranked No.1 among the Top 50, for Operational Efficiency. MMFL has its head office in Chennai, TamilNadu, and is focused on bringing large infusions of productive capital to the rural poor in South India through carefully selected and trained women's self-help groups (SHGs). MMFL offers some of the lowest interest rates in the country.
"We are extremely excited about the support and investment from a global, strategic investor like UEF," says MMFL Chairman, Dr. Tara Thiagarajan. "MMFL and UEF share the common vision of growth and profitability in conjunction with positive social and economic impact. I am confident that MMFL will be able to leverage and benefit from UEF's wide experience in the sector."
The investment will enable MMFL to increase its management bandwidth, strengthen its institutional capacity, and continue to expand its customer base. MMFL will also roll-out a suite of new, piloted products designed to support and promote entrepreneurship by creating economies of scale for raw materials and building market efficiencies through information products that link suppliers and buyers. The products will diversify MMFL's revenue streams, build markets for additional financing, and provide key insights into the needs of rural customers. MMFL seeks to serve over one million customers by 2013.
"UEF's capital infusion will go a long way in supporting our continued commitment to deliver efficient, high-quality services to our rural customers, enhance the depth of our product offerings and fuel our growth." says Mr.M.Narayanan, MMFL CEO. "Now armed with clearer insights into the needs of rural borrowers and entrepreneurs, MMFL is poised to roll out new, tailored loan products to both individuals and small groups that will cater specifically to varying risk profiles and provide additional benefits such as training and asset insurance."
Tracing its origins to the Bank of Madura in 1995 where it began as an initiative to profitably reach rural customers under the Chairmanship of the late Dr. K.M. Thiagarajan, MMFL now operates as an independent non-banking finance company that, in conjunction with its partner organization, the Microcredit Foundation of India (MFI), serves over 380,000 customers. MMFL's unique model focuses on increasing the value and return of each customer by offering a set of synergistic products that stimulate entrepreneurship.
"MMFL's approach to growth and enterprise value is unique. We are impressed by the company's ability to deepen its customer relationship and the brand it has built in the market. We are delighted to partner with them and look forward their success." says Mr. Sandeep Farias, Managing Director of Elevar.