MFI raises $1.5m in equity

MokshaYug Access (MYA), a Bangalore-based micro finance institution (MFI), on Monday announced it has raised $1.5 million in equity from Unitus Equity Fund LP (UEF), a private equity fund that makes investments in emerging MFIs and venture capitalist Vinod Khosla, to finance its expansion.

While UEF's share is $1 million, Khosla's contribution is $500,000. Other private investors and MYA Founder Harsha Moily have contributed another $500,000.

"The entire funding "" Rs 8.35 crore ($2 million) "" will enable the company to build a supply chain and infrastructure for dairy farming and healthcare centres, create key market linkages between the rural community and upstream players," said Moily.

The funding will also go towards strengthening MYA's technological platform. MYA's business is focused on developing an organised supply management platform supported by manpower, infrastructure and community participation.

In the next year, MYA will concentrate on developing a franchise model around client-operated healthcare centres and dairy farming units, and rolling out to rural households.

"MYA will explore partnerships with healthcare service providers and dairy firms to roll out operations in these two verticals," Moily stated.

Once a robust business model in dairy and healthcare is in place, MYA plans to rollout an entire range of verticals across rural India to reach one million households by 2010 and five million households by 2013.