IFC may invest in microfinance funding agency Ananya

Microfinance Focus, Aug 4, 2010: World Bank’s International Finance Corporation (IFC) may invest in India’s Ananya Finance For Inclusive Growth Pvt. Ltd.  Ananya is expected to raise approx. INR 1.50 billion (approximately $ 32.60 m) in equity to strengthen its capital adequacy and onlend larger amount in the new entity. IFC’s proposed investment in Ananya consists of an equity investment of upto INR 500 million ($ 10 million) up to 20% stake in the company.

Ananya Finance For Inclusive Growth Pvt. LTD. (Ananya or the Company) is the newly set up Non Banking Finance Company (NBFC), to scale-up microfinance in India by providing financial and non financial services to Microfinance Institutions (MFIs). Ananya (formerly FWWB), provides an effective channel to reach out the large number of underserved and poor microfinance clients as it works aross 17 states in India with more than 122 Partner Oganizations, who have an outreach of more than 14 million.

FWWB, India was one of the first few institutions created as an affiliate of Women’s World Banking in 1982, founded by Smt. Ela R. Bhat, eminent social worker and founder of SEWA. During the last 3 decades, FWWB has played a critical role in nurturing and developing several of the large and small MFIs. Notably some of the largest MFIs today such as SKS, SHARE, and Spandana have received the first loan from FWWB. FWWB, is presently, one of the leading wholesale institutions of small and mid level MFIs by providing loan, capacity building and policy advocacy support.

Ananya is in the process of transforming a well established NGO providing lending as well as capacity building support smaller MFIs into a wholesale Microfinance institution. As a wholesale financing institution it needs significant capital to scale up significantly. IFC’s capital infusion will provide Ananya with initial seed capital to scale up and build up a right investor profile in the institution.

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