Equity Investment in Microfinance

Principal Investigators: Michael Chasnow, Doug Johnson
Research Team: Michael Chasnow, Doug Johnson
LEAD Centre: Centre for Microfinance
Focus Area: Credit and Savings
Project Geography: Across India
Partner: NABARD, BIRD
Status: Completed

Background:

Equity investment is playing an increasingly important role in providing financing for microfinance institutions (MFIs) around the world. In India, debt and donations have traditionally supplied the bulk of financing for MFIs, but over the past year and a half, equity investment in the microfinance sector has risen dramatically. Due to recent regulatory changes and the strong growth of the overall microfinance sector in India, the demand for equity financing is likely to rise even further in future years. In this report, we survey the state of equity investment in the microfinance sector in India and highlight challenges to the future growth of equity investments in the sector.

Related Resources
WORKING PAPER – Equity Investment in Indian Microfinance: A Guide for Practitioners CMF Working Paper No. 37