Aavishkaar Goodwell India Microfinance Development Company Ltd
Last updated 21 April 2020, by Impactyield.
Aavishkaar Goodwell India Microfinance Development Company Ltd is a business development company for the microfinance sector that invests in entrepreneurial microfinance organizations on a socially and commercially sustainable basis. The Company is founded on the principal belief that improving access to affordable financial services for people in the Base of the Pyramid contributes to sustainable development, and that this improvement can best be achieved by developing and scaling up entrepreneurial microfinance organisations and integrating them into the mainstream financial sector.
The Company provides commercial long-term capital and active support to entrepreneurial microfinance start-ups and existing microfinance institutions (MFIs) to kickstart and accelerate their growth and build value whilst maintaining their social focus.
The objective of the Company is to maximize value through superior risk-adjusted social and financial returns, by focusing on scalability, efficiency and leverage, and by applying a rigorous private equity approach within a mission driven setting.
The Company was initiated by an Indian-Dutch joint venture, with the Goodwell team partnering with the team that manages Aavishkaar India Micro Venture Capital Fund (profiled elsewhere on ImpactBase).
The Company’s strategy is to develop entrepreneurial MFIs by investing patient risk capital and by providing them with guidance and support. As a for-profit business development company, its objective is to create both social and economic value for its investments and their clients, and consequently for its investors. The Company invests into start up and mature MFIs operating in urban and rural areas.
The functional currency of the Company is US dollars. The investments are denominated in Indian rupees.
Key performance indicators
Asset manager: Inerjys Ventures
Product track record: Fund has 15 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Closed - no longer investing
Inception year: 2007
Vintage year: 2007
Target close date: 01/06/2012
Product term: 10 year + 2x 1-yr ext
Assets under management: n.a.
Investment size: Min: 450,000; Max: 3,000,000; Avg: 2,000,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 7
Fund investments to date exited or repaid: 2
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: n.a.
The objective of the Company is to create both social and economic value for its MFI investments and their clients, and consequently for its investors. By focussing on scale and efficiency, the Company aims to increase outreach and sustainability of its MFI investments. The Company believes these “benefits of scale” will translate into a substantial social impact and an attractive financial return on its investments. The company intends to increase financial inclusion of the un- and underbanked by providing microfinance products through MFI's and other channels.
Furthermore, the Company’s initiators have built an integrated support system for the Company’s MFI investments. Through its strategic alliances with commercial banks, donors and capacity builders the Company can offer its MFI investees the best possible support and access to technical assistance. MFIs will be able to benefit from support and guidance in the fields of capital structuring and financial management, governance and transparency, MIS and business planning, operational efficiency and technology, and innovation in products and distribution channels.