Chennai-based Madura Micro Finance Limited (MMFL) has raised Rs 22 crore from the private equity investment firm Unitus Equity Fund L.P. The funds will be used to expand the management, strengthen its institutional capacity, and continue to expand its customer base.
Unitus has invested in a number of Indian microfinance institutions. Some of the include SKS Microfinace, Ujjivan, Moksha Yug Access and Grama Vidiyal. Unitus also made its first non-MFI investment late last month when it invested $15 million along with Omidiyar Network in Bangalore-based e-governance services firm Comat Technologies. It has also formed a financial advisory firm called Unitus Capital.
MMFL is focused on bringing capital to the rural poor in South India through selected and trained women's self-help groups. It is also involved in distribution of mutual funds and insurance policies through its tie-ups with Prudential ICICI and Bajaj Allianz. With this round of funding, MMFL also plans to introduce new products. Rhe MFI has a target to serve over one million customers by 2013.
"MMFL will roll out new, tailored loan products to both individuals and small groups that will cater specifically to varying risk profiles and provide additional benefits such as training and asset insurance," says M.Narayanan, MMFL CEO in a release.