Daniel Rozas, e-MFP & Anna Kanze, Grassroots Capital Management discuss microfinance IPOs in NextBillion's podcast - a warm-up for Monday's Twitter chat
Initial public offerings have long been a controversial topic in microfinance, and rightly so. The IPOs of Compartamos in Mexico and SKS Microfinance in India, in 2007 and 2010 respectively, made a lot of money for investors and turbocharged the sector’s growth. But they also sparked hyper commercialization and debt crises that rocked the industry, gravely harming its clients and tarnishing its public image.
But last year, two Indian MFIs, Equitas Holdings and Ujjivan Financial Services, had successful IPOs that have garnered a much more positive reception in the financial inclusion community – while also bringing in some major funding. NextBillion spoke with Daniel Rozas of the European Microfinance Platform and Anna Kanze of Grassroots Capital Management about how these four offerings differed, and what these differences could mean for the future of public investment in microfinance. You can listen to the interview in the podcast here and on Monday, Jan. 30, these topics will be discussed in more depth in NextBillion’s first Twitter chat, featuring Kanze, Rozas and Microfinance Transparency founder Chuck Waterfield – join us at 10:00 AM EST at #MFICHAT.