In September 2012, Intellecap successfully advised Arohan Financial Services on the sale of its business to IntelleCash Microfinance Network. Arohan Financial Services is a Microfinance Institution (MFI) which provides financial services to the urban and semi-urban poor in West Bengal, Bihar, and Assam, three Low Income States in India. Arohan had operations in 93 branches across 19 districts in these States, with a loan portfolio size of approximately USD 8.4 million. After the acquisiton, the combined entity plans to reach 168,000 borrowers and have a loan portfolio of USD 18.7 million by September 2013.
Intellecap's knowledge and expertise in microfinance industry facilitated this transaction as we had previously worked with all the investors and institutions involved. We also positioned the transaction to both sides as a unique opportunity for consolidation in the microfinance sector. Further, our experience and expertise in the microfinance sector helped us negotiate and structure a complex series of transactions with a variety of investors in an extremely quick timeframe. The transaction was valued at about USD 9.5 million and involved Aavishkaar Goodwell II, India Financial Inclusion Fund (IFIF), Michael & Susan Dell Foundation, and Bellwether Microfinance Fund as investors.
Photo credit: Srinivas Rao