Case Study

SHARE is one of India’s leading MFIs, lending primarily to low income women in line with the Grameen group liability model. The company currently has 990 branches across 16 states and employs nearly 5,500 people.

Its existing customer base of over 2.8 million is growing at around 50,000 per month, primarily in new and underpenetrated states. Through the provision of affordable income generating loans, SHARE enables its clients to take control of their own economic destinies, thereby contributing to increased prosperity at the bottom-of-the-pyramid. The company also offers small and medium sized enterprise loans and affordable micro-insurance. In addition, SHARE is currently exploring the distribution of value-adding ancillary products and services in the fields of health, education and energy.

Company Achievements since Legatum Ventures Investment

• The company has grown from 1.18 million customers to over 2.8 million. It is currently enrolling more than 1,500 customers per day;
• Loan portfolio has increased from USD 115 million to over USD 480 million;
• Re-established strong profitability (25%+ ROE) and the necessary platform for considerable future growth;
• Implemented rigorous corporate governance policies including extensive board level committees;
• Achieved an mfR2 rating from CRISIL (S&P in India), and an M2 rating from ICRA;
• Underwent a full audit conducted by Ernst and Young. Published audited IFRS accounts for FY2008 and disclosed IRR interest rates;
• Streamlined operational processes, upgraded technology platform and deepened senior management team.

Social Impact

• SHARE offers the potential to bring millions of underserved individuals into the formal financial sector;
• Through the provision of credit, SHARE offers its customers greater economic opportunities by enabling them to invest in income producing activities;
• SHARE’s social outreach programmes educate and inform its clients, empowering them to make the best decisions possible given their own individual circumstances.