Posted on June 17, 2009 - by Gavin

Grama Vidiyal raises over USD 4 million of equity capital, the first equity investment in India in 2009…

Tamil Nadu

Tamil Nadu, India-based microfinance institution successfully completes second round of equity infusion
from MicroVest, Unitus Equity Fund I (UEFI) and Amar Foundation.

Tamil Nadu, India, – Grama Vidiyal Microfinance Private Ltd (GVMFL) is pleased to
announce the successful completion of the second round of equity infusion of USD 4.25 million. GVMFL
provides financial services to 400,000 microfinance clients and has a loan portfolio of over USD 40
million. The new capital will be utilized to support the company’s major expansion plans over the next
twelve months and meet the enhanced capital adequacy norms set by the Reserve Bank of India.

“During these economic times, we are very pleased to receive the unwavering support of our existing
investors, Unitus Equity Fund (managed by Elevar Equity Advisors) and Amar Foundation, and our new
investor, MicroVest,” said S. Devaraj, Founder & CMD of GVMFL. “From the very beginning, MicroVest’s
team members have been extremely knowledgeable and consultative on issues surrounding our
business. Their international network and outstanding reputation in the field of microfinance will be of
great value to us as we expand our services and outreach.”

“We are extremely pleased with our investment in such a renowned company as GVMFL,” said Gil
Crawford, CEO of MicroVest. “This is our first investment in India so choosing the right company to mark
our foray into the Indian market was critical. Their management team is exceptional and we look forward
to supporting them in future endeavors.” The investment in GVMFL came from MicroVest II, MicroVest’s
newly launched equity fund, which invests with Tier I microfinance institutions. MicroVest II investors
include large institutional and private investors.

“This successful capital raise is a reflection of the GVFML’s’s superb results and market leadership in
Tamil Nadu.,” said Chris Brookfield, Managing Director of Elevar Equity Advisors (which manages the
Unitus Equity Fund -I & Unitus Equity Fund – II), the management company of the UEFI and a board
member of GVMFL. “GVFML has successfully employed the resources of commercial capital to advance
its goal to provide opportunities for the poor. We are delighted to be a long term investor in their efforts. ”

This equity raise is the first in India in 2009. It comes at a time during very difficult market conditions. Unitus Capital (UC) acted as financial advisor to GV during the equity raise. Eric Savage, Managing
Director of UC, commented, “These are very challenging times for MFIs raising capital and having a
financial advisor can add a lot of value. We are very satisfied at being able to help GV raise equity under
tough market conditions – investor confidence is low and valuations are on the decline. However it is still
possible to find the right investor at a good price and MicroVest’s investment in GV is testament to this
fact.”

About Grama Vidiyal Microfinance Private Ltd

Grama Vidiyal Microfinance Limited (GVMFL) is a leading and profitable microfinance institution (MFI)
serving over 400,000 poor women in Tamil Nadu, India. The Activists for Social Alternatives (ASA) is the
not-for-profit, Mother NGO founded by Sri. S. Devaraj the present CMD of GVMFL P. Ltd., and was.
Grama Vidiyal meaning “Dawn of Rural Poor”, the microfinance program of ASA, registered as a Public
Charitable Trust in 1997 and then transformed into GVMFL, an NBFC, in February 2007. www.gvmfl.com

About MicroVest

MicroVest Capital is a global microfinance intermediary that provides financial capital to growing
microfinance institutions (MFIs) in emerging markets. As the first private MFI investment fund in the US,
its goal is to link capital markets to the entrepreneurial poor by expanding the capacity of profitable MFIs.
MicroVest is based in Maryland and was founded by CARE, MEDA, and the Seed Capital Development
Fund.www.microvestfund.com

About the Unitus Equity Fund

The Unitus Equity Fund, managed by Elevar Equity LLC, is a global growth private equity fund focused on
the underserved 4 billion in developing countries. The fund intends to bridge the gap between these
underserved communities and global capital, helping to create a virtuous cycle of opportunity based on
open access for all. UEF is a strategic affiliate of Unitus an international nonprofit organization. For more
information, please visit www.elevarequity.com

About the Amar Foundation

Amar Foundation is a non-profit private foundation that was founded in 1987 by Vinod and Neeru Khosla.
The Foundation provides support to a variety of non-profit organizations with specific focus in micro
finance and education.

About Unitus Capital (UC)

Unitus Capital provides financial advisory services to microfinance institutions (MFIs) and other
companies that benefit the poor. UC’s services include arrangement of debt and equity private
placements, structured products such as off-balance sheet financings and strategic financial advisory
services. UC is a strategic affiliate of Unitus an international non-profit organization.
www.unituscapital.com