The financial services sector is a key part of a thriving economy and critical for development. It facilitates payments, ensures savers have somewhere safe to keep their money, and provides direct capital to enterprises that need it.
In 2019, the Foreign, Commonwealth & Development Office (FCDO) commissioned an evaluation of the impact of BII’s financial institutions portfolio. This evaluation consisted of two phases, namely a portfolio-level review completed in 2020 (phase one), and a subsequent series of in-depth case studies (phase two).
This report presents the findings of one in-depth case study, exploring BII’s investment in Aavishkaar Goodwell India Microfinance Development Company II (AGIMDC II) which subsequently invested in Arohan Financial Services in 2012, an Indian MFI seeking to provide loans to underserved groups, particularly women
The case study found evidence that our investment enabled the AGIMDC II fund to achieve scale and take on greater risk – and that the fund’s investment in Arohan provided a lifeline when the broader microfinance industry in India was in crisis. A survey of 1,139 borrowers indicated high levels of borrower satisfaction with Arohan’s loan products, disbursement and collection processes, with respondents reporting positive impacts on sales, liquidity, profitability and savings.
