Basix to raise Rs 300 crore from PE funds

Written by Kavitha Venkatraman | Chennai | Updated: Aug 13 2010, 03:23am hrs
Basix is planning to tap the private equity (PE) market to raise about Rs 300 crore in the coming months. This would be the fourth time the oldest microfinance entity is approaching the PE investors.

The company had raised Rs 21 crore in 2001 and again in 2009, it raised Rs 55 crore. While World Bank arm International Finance Corporation had invested in the first round, MicroInvest Vehicle, Avishkar, Lok Capital and Axis Bank contributed in the second phase. Recently, Basix mopped up Rs 118-crore by placing equity shares with PE investor Matrix Partners and few others. Matrix had invested Rs 100 crore while the balance Rs 18 crore had come from Europe-based Hovos Triodos Fund (Rs 12.7 crore) and dedicated MFI vehicle Lok Capital (Rs 5.5 crore). The money was infused into Bhartiya Samruddhi Finance (BSFL), Basixs flagship venture. After the equity infusion, promoters led by Vijay Mahajan and employees hold about 33% stake, Matrix 18%, IFC 11%, Sidbi 7% and the remaining equity is spread among other investors.

According to Vijay Mahajan, chairman of Basix and president of Microfinance Institutions Network, current loan outstanding of the company stands at Rs 1,500 crore and the target this year has been set between Rs 2,500 crore and Rs 3,000 crore. The company would need financial infusion to scale up its operations.