Tuesday 7 October 2014

Bimputh Finance gets $ 750,000 loan from Rural Impulse Fund to increase financial inclusion

* First investment of Incofin Investment Management in quick evolving Sri Lankan microfinance market

* Creation of employment for thousands of low income families and increase in 

opportunity for micro-, small and medium enterprises

* Introduction of new microfinance products including micro housing and micro savings

Bimputh Finance, a Sri Lankan non-banking finance company received a loan of $ 750,000 from Incofin IM’s Rural Impulse Fund (RIF I). The funds will be used by Bimputh to expand its microfinance operations in the island nation. TSW Capital Services acted as the sole financial advisor to Bimputh Finance for this deal.

Bimputh Finance started its greenfield operations in 2007. Originally, it was fully owned by the Daya Group. In 2011, the company made an introductory offer on Diri Savi Board by inviting public to participate in its growth story.

In 2012, Bimputh ventured into microfinance staring with 2,000 clients and 3 branches. 

Today, Bimputh Finance operates through a combined network of 25 branches offering financial services to a customer base of nearly 65,000, mainly micro, small and medium entrepreneurs. Its operations are focused largely in the rural areas of Ampara, Jaffna, Monaragala, Puttlam, Kalutara, Gampaha, Batticaloa, Badulla, Hambantota and Colombo District.

Commenting on the investment, Daya Gamage, Chairman of Bimputh Microfinance, said: “Bimputh Finance has come a long way since 2007. Going forward we aim to become one of the leading microfinance institutions in Sri Lanka, providing our clients with facilities at the lowest interest rates possible in order to promote and nurture their enterprises. 

Incofin IM’s value addition to our business comes not just from financing our expansion plans but also from their technical knowledge, guidance and transfer of best practices.”

Speaking on the investment in Bimputh Microfinance, Aditya Bhandari, Regional Director South Asia Incofin IM, stated: “Our partnership with Bimputh shows our commitment and ability to take a leadership position in identifying strong and likeminded institutions which are focused in providing access to finance to the masses. The Sri Lankan microfinance market is quick evolving and our partnership will enable Bimputh to be ahead in adapting to the global best practices.”

Commenting on the new partnership, Chamindra Gamage, Executive Director at Bimputh Microfinance, said: “Our growth in the last two years has been tremendous. Our ability to receive funding from a leading microfinance fund such as Incofin IM’s RIF I strongly demonstrates the high level of excellence in our operations and the strong work ethic of the team in maintaining an almost 100% recovery rate. Our partnership with RIF I will be the stepping stone towards becoming a key player in the microfinance sector in Sri Lanka. 

With the support of RIF I, we plan to introduce new and exciting products not presently seen in Sri Lanka’s finance sector, including micro housing and micro savings bringing about financial inclusion to our clients.”
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