Abler Nordic (formerly Nordic Microfinance Initiative) on Monday said it has launched its fifth fund with an aim to raise at least $140 million this year.
The social impact investor will continue investing in microfinance companies with its latest fund and plans to allocate a significant portion for further investments in the Indian market, it said in a statement.
“India is where we started and continues to be a key market for us, with roughly 40% of our $345 million committed capital invested as equity in Indian financial inclusion companies. Since our establishment in 2008, our public-private partnership has contributed to enabling millions of low-income people with a wide span of responsible financial services,” said Smriti Chandra, investment director and head of Abler Nordic’s India office.
Abler Nordic was set up as a public-private partnership in Oslo in 2008. The social impact investor backs financial inclusion companies globally. The fund primarily invests in traditional microfinance companies that offer financial services to low-income households. It invests in firms in primarily two geographies: Asia and Africa.
Currently, it has 26 active investments across its five funds – Global, Frontier, Fund III, Fund IV, and Climate Smart Fund. Its portfolio consists of 11 equity, 7 debt and 7 microfinance investment vehicles investments.
The social impact investor’s India portfolio includes SEWA Grinh Rin Limited (Sitara), Dvara KGFS, Light Microfinance, Sindhuja Microcredit Pvt Ltd, North East Small Finance Bank, Utkarsh Coreinvest Ltd, Satin Creditcare Network LTD., Sub-K IMPACT solutions, and Svasti Microfinance.
Its active and direct Investments (excluding the MIVs) reach 10 million clients in seven countries in Africa and Asia; Cambodia, India, Indonesia, Kenya, Myanmar, Uganda and Senegal, Abler Nordic said in a release.
“Our diverse investments in recent years and active engagement in the companies we are invested in is in line with the wider concept of financial inclusion, and it was time for our name to reflect this,” said Arthur Sletteberg, managing director of Abler Nordic
So far, Abler Nordic has seen new investors from both Norway and Denmark joining each new fund with its existing backers. In its last fund, with total commitments of $140 million, 60% of the capital came from private investors.
Since 2008, the Ministry of Foreign Affairs and Norad have also contributed funds for currency hedging and technical assistance. It has offices in Nairobi, New Delhi, Jakarta, Copenhagen and Oslo, with a total of 22 employees.
