Lok Capital LLC, a Mauritius-based venture capital fund, has invested an undisclosed sum in RuralShore Business Services Pvt Ltd, a Bangalore-based company. HDFC Ltd is a strategic investor in RuralShores holding 26% equity in the company.
RuralShore plans to utilise the fund in expanding its reach by opening additional operating centres in rural areas of India, it said in a joint statement issued with Lok Capital. It creates employment and entrepreneurial options for rural youth by encouraging them to BPO opportunities.
Speaking on the development, Murali Vullaganti, CEO, Rural Shores, says, “this strategic investment will help us to work with microfinance institutions, where we believe we can reduce the cost per transaction by delivering services out of our rural centers.”
The company has already established four centres and will be commencing another three in the near future. It is a rural-focused socio-commercial initiative launched to create employment in villages through the establishment of Rural Business Processing Centers. It plans to set up 500 centers across the country in six years with each center employing nearly 200 people from surrounding villages.
Lok Capital LLC is a $22-million venture capital fund which invests in commercially viable microfinance institutions in India. In India, the fund is advised by Delhi-based firm Lok Advisory Services. Lok Capital has already invested in several MFIs in India including Spandana, Basix and Ujjivan. In September 2009, it has invested $1.5 million in Asirvad Microfinance Pvt Ltd, a Chennai-based MFI.