Our Approach

Lok Capital has concluded that any intervention intended to help the microfinance sector should aim to (i) mobilize for-profit equity capital (ii) back and nurture MFI managerial talent; and (iii) contribute to institution-building. These three aims being very similar to the objectives of investors in early stage companies, we believe that a “venture capital approach” suits the needs of the Indian microfinance sector. Lok creates an appropriate entity/platform to allow investment in a selection of suitable Indian MFIs, with the objective of bringing equity capital to the table and subsequently nurturing investee companies to grow and evolve along commercial lines.

Some specific tenants:

	Carefully select and nurture socially motivated, yet sustainable and scalable, microfinance businesses in India
	Partner with entrepreneurs who pursue the larger agenda of financial inclusion, and creating robust institutions, rather then simply being focused on financial returns
	Not seek control, but develop partnerships based on trust with the management team of the investee company
	Remain invested in each company a period of 4-7 years as long term investors
	Help companies become commercially successfully institutions by providing a range of support services including, but not limited to financing, HR, technology, systems, processes, product development and corporate governance