MyDigitalFC 15 September 2012
In what can be seen as the first consolidation move in the Rs 20,000 crore-plus micro finance industry, IntelleCash Microfinance Network Company (P) Limited, an arm of the Intellecap group of companies, has bought 60 per cent stakes in the Kolkata-headquartered MFI Arohan Financial Services. The unique series of back-to-back transactions in IntelleCash and Arohan amounted to over Rs 52 crore and was facilitated by Aavishkaar Goodwell II, a fund that invests in entrepreneurial microfinance and financial inclusion businesses in India.
The MFI entity will continue to be called Arohan and the headquarters will remain in Kolkata. However, Manoj Nambiar, managing director and CEO of IntelleCash, will join the board of Arohan and will take over as the new managing director.
Confirming the developments, Shubhankar Sengupta, who will continue to be the CEO of Arohan and continue to spearhead its operations, said, “We stand to gain considerably through this consolidation move in terms of equity, money and much more. This transaction not only gives the company a strong equity base much needed for our future growth, but also deepens our management capacity. Post consolidation we will have a strong equity base and portfolio spread across three states – Bihar, West Bengal and Assam. It is a perfect launch pad to achieve our aim of reaching a portfolio size of Rs 100 crore by March 2013 and working towards crossing Rs 1000 crore over the next 5 years.”
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