Amit Patni and Arihant Patni of Nirvana Venture Advisors have acquired a stake in Grameen Capital India (GCI) from its original investor IFMR Trust for an undisclosed amount. Grameen capital is joint venture between Grameen Foundation, Citi and IFMR Trust.
Although the stake acquired and the deal value stands undisclosed, one source told VCCircle it involves 40 per cent stake purchase. GCI is a social investment bank that has facilitated more than Rs 700 crore (about $127 million) of capital flow to microfinance institutions and other social enterprises serving the base-of-the-pyramid segment, indirectly touching the lives of more than one million beneficiaries.
Royston Braganza, CEO of Grameen Capital India said, “Grameen Capital was set up to build bridges for capital to flow to enterprises serving the poor and a key challenge has always been finding domestic capital. This, for us, is extra-special.”
“We welcome the Patnis as we step into the next phase of our growth by building on our advisory business and launching fund-based solutions,” he added.
GCI will continue to provide capital market access to microfinance institutions and other social enterprises through innovative debt and equity solutions, credit enhancement and strategic advisory services, said the company.
“Grameen is globally known for its pioneering work in dealing with excluded populations. We look forward to bringing our learnings from the technology space in particular to accelerate the war against poverty,” Amit and Arihant Patni said in a joint statement.
Amit Patni is co-founder and chairman at Nirvana Venture Advisors, a venture capital fund with focus on the internet space in India. Arihant Patni is managing director of Patni Financial Advisors, an investment management firm, as well as co-founder. He is also on the board of Nirvana Venture Advisors.
Both Amit and Arihant are sons of the eldest of the three Patni brothers Gajendra. Last year, the Patni family had sold their 45.6 per cent stake in India’s sixth largest IT firm Patni Computer Systems to iGate Corporation and Apax Partners.
(Edited by Prem Udayabhanu)