India: Intellecash takes majority stake in microfinance firm Arohan
Intellecash has invested close to Rs 16 crore for acquiring the stake, said Shubhankar Sengupta, CEO, Arohan. Established in 2006, Arohan has a customer base of over one lakh households and an asset base of Rs 40 crore.
While the recent regulations by the Reserve Bank of India have provided much-awaited structure and direction to the MFI industry, requirements such as enhanced capital, margin caps, and higher provisioning have made economies of scale important to sustaining business operations and creating value, Sengupta said.
“This consolidation will enhance the equity base of Arohan and allow it to expand its retail presence across Bihar, Assam, West Bengal, and other low income states,” he added.
With this consolidation, Arohan is hopeful of reaching a portfolio size of Rs 100 crore by March 2013.
SOURCE: The Hindu Business Line