Grama Vidiyal Micro Finance Limited (GVMFL) raises $ 4.25 Million

1 min read
Grama Vidiyal Micro Finance Limited (GVMFL) raises $ 4.25 Million

Microfinance is emerging as the most funded sector in recent times if the recent funding action is anything to go by.

Grama Vidiyal Micro Finance Limited (GVMFL), a Tamil Nadu based microfinance institution, has raised $4.25 million from MicroVest and its existing investor Unitus Equity Fund in its second round of fundraising. Vinod Khosla, who had also invested in the first round of fundraising of GVMFL, has invested in this round too, through his nonprofit private foundation, Amar Foundation.

The company plans to use the funds for meeting its expansion plans. A part of the funds will also be used to meet the enhanced capital adequacy norms set by the Reserve Bank of India (RBI). Unitus Capital was the advisor for the transaction.

GVMFL has around 400,000 microfinance clients and has a loan portfolio of over $40 million. It is a profitable microfinance institution that serves poor women in Tamil Nadu. In its first round of fundraising, GVMFL had raised $3.7 million from Unitus Equity Fund L.P. and Vinod Khosla, in February 2008.

MicroVest II, MicroVest’s newly launched equity fund which invests in Tier I microfinance institutions, has invested in GVMFL. Large institutional, as well as private investors, have invested in MicroVest II.

MicroVest Capital is a global microfinance intermediary that provides financial capital to microfinance institutions (MFIs) in emerging markets. It was founded by CARE, MEDA, and the Seed Capital Development Fund.


Subscribe to Moneymint Weekly

Every Sunday we email people like you with top tips, insights and opportunities to manage your finances and build your online business. No hype, no scams, no fake gurus. Sign up below to get the next one.

Please enter a valid email address
That address is already in use
The security code entered was incorrect
Thanks for signing up

Pratima Singh

Pratima is a content writer at Moneymint. As a Finance enthusiast, she loves sharing tips and tricks to help others navigate the financial sphere.