India-focused private equity investor Lok Capital has reportedly co-led an INR200m ($3.7m) equity financing round for credit and financial advice provider Suryoday Microfinance.
Lok was already an investor in the business – which was set up by a team of three former bankers – and has a portfolio of about $2.1m, according to local media reports.
The company launched at the end of 2000 with the support of a grant from the Rockefeller Foundation, and chose India as its first market due to its employees’ experience in the region and the need to improve access to basic services.
Suryoday Microfinance CEO Baskar Babu said, “Despite the fact that microfinance initiatives are over two decades old in the country, financial inclusion is still a distant dream for many poor people.”
Lok currently manages two funds with more than $85m under management.
In August the Mumbai-based social investment firm also led a $7.1m financing round for enterprise finance company Vistaar Financial Services.
The Series B round was also backed by new investor Omidyar Network and existing supporters Elevar Equity and SVB Capital.
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