Intellecap Secures $9.87m Series B Funding for Bhartiya Samruddhi Finance Limited

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) April 29, 2009 --

Hyderabad, India, April 30, 2009 - Bhartiya Samruddhi Finance Limited (BSFL), the flagship company of the Hyderabad based BASIX group, has concluded its Series-B funding of INR 500Mn ($10m) with investments from Lok Capital LLC, Aavishkaar Goodwell India Microfinance Development Company and Small Industries Development Bank of India (SIDBI). Intellectual Capital Advisory Services (Intellecap) acted as BSFL's advisors to the issue. IFC, Shorecap International Limited, Stichting Hivos-Triodos Fonds, ICICI Bank Limited and HDFC had invested in the previous round of capital expansion in 2001.

Founded by Vijay Mahajan, well-known in the development space as a visionary and a pioneer in the Indian Microfinance industry, BSFL started its operations in 1996. Today, BASIX is the world’s leading provider of Integrated Livelihood Promotion Services and has impacted the lives of more than a million poor people through its unique holistic approach to livelihood promotion which uses microfinance, micro-insurance, agricultural, business and institutional development services in a mutually reinforcing manner. With a loan portfolio of INR 462 Crores ($92.4m) and a customer base of over 1.5 million across BASIX and its affiliates for all services, BSFL operates in 15 states across India and expects to reach 10 million clients by 2014.

According to Vijay Mahajan, Chairman and CEO, BSFL, "This is a big milestone for us as investors have reposed faith in the BASIX integrated livelihood promotion model over cookie–cutter micro-credit. We are all set to now address our goal of reaching 10 million poor households by 2014."

Mr. Malla, Chairman, SIDBI said, "BSFL is well positioned in the MF sector with its holistic approach using microfinance for the upliftment of the economically weaker sections and rural poor. SIDBI's equity support to BSFL is a reaffirmation of its role as a true partner in micro finance and developmental initiatives. The capital infusion will enable BSFL to maintain its mission focus and leverage large borrowings, to expand its outreach rapidly, especially in under-served States like Jharkhand and Bihar and the Northeast."

Donald Peck, Co-founder of Lok Capital commented “We are delighted to be able to support the further growth of BSFL as it embarks on the next stage of roll-out of its unique agriculture and skills focused business models”

BSFL, through this round, has also facilitated partial exit of some of its initial investors through a secondary sale worth INR 20.2 crores (more than $4m) to the new investors.

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For further information, contact:
Mr. Atreya Rayaprolu, Vice President, Intellecap
atreya@intellecap.net

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