Arohan Microfin raises Rs 22 crore capital from 3 investors

MUMBAI: The IntelleCash-promoted Arohan Microfinance today said it has raised fresh capital worth Rs 22 crore from three investors- Aavishkaar Goodwell II, MSDF and Swaminathan Ankleswaria Aiyar, taking its overall portfolio to Rs 140 crore.

Last September, Intellecap and Aavishkaar Goodwell II had announced the first formal consolidation in the microfinance sector with IntelleCash Microfinance Network Company picking up a majority stake in Arohan.

Since then Arohan, established in 2006, has roped in AG II, Michael & Susan Dell Foundation (MSDF) and IFIF as its institutional investors.

As of the September quarter, the MFI had a portfolio of close to Rs 140 crore, over 1,70,000 customers, 450 employees and 63 branches across Bengal, Bihar and Assam.

Manoj Kumar Nambiar, managing director of Arohan said: "With this additional capital, we would want to scale this inorganic and organic growth focus to expand into other low income states in Central, Eastern and Northeastern regions."

Sushma Kaushik, senior investment manager at Aavishkaar said: "IntelleCash and Arohan are suitable candidates for consolidation which is the premise with which we invested in them. We are happy with the outcome of the consolidation and believe that this could be scaled up for full scale growth."

Geeta Goel, director at Michael & Susan Dell Foundation said: "The Dell foundation catalysed the urban microfinance market in the country with direct equity investments in potentially strong, early stage urban MFIs."