MicroVest Invests $10 million in Annapurna to Support Financial Inclusion for Women in India

MicroVest Capital Management (MicroVest) has announced an investment in Annapurna, a leading microfinance institution located in Odisha, India. The $10 million investment aims to promote economic inclusion in underserved rural communities, with a specific emphasis on empowering women in the country. Additionally, the investment will help Annapurna expand its services to reach more individuals in rural areas and grow its loan portfolio.

A recent IFC study estimates that 90% of female entrepreneurs in India do not receive financing from formal institutions, with respondents stating that personal resources are their most preferred option for finance. Furthermore, women entrepreneurs seeking to scale-up their businesses must also grapple with challenges such as limited product awareness and/or financial literacy.

Annapurna, which provides financial services to approximately 2.4 million end borrowers, with 99% being female, was founded in 2010 and offers products that include group loans, project-specific micro loans, and MSME loans for small business owners. The company also provides training and other non-financial services to help its clients enhance their entrepreneurial skills and progress toward their business goals.  

The company’s average loan size of approximately $400 and their policy of regular monitoring and follow-up on its end borrowers, coupled with financial literacy training, has resulted in re-payment rates of over 99% on its collateral-free loans.

This is MicroVest's third investment in Annapurna.

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The information contained here has been written for MicroVest Capital Management, LLC (“MicroVest”) and no representation or warranty, expressed or implied is made by MicroVest as to the accuracy or completeness of the information contained herein. The portfolio company highlighted is for informational purposes only and does not represent all of the portfolio holdings and it should not be assumed that investments in the portfolio company identified and discussed were or will be profitable. The information presented on this page is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase an interest in any MicroVest product (the “Funds”), and nothing herein should be construed as such. Any such offer or solicitation will be made only by means of delivery of a definitive private offering memorandum which contains a description of the significant risks involved in such an investment. Prospective investors should request a copy of the relevant Memorandum and review all offering materials carefully prior to making an investment.