AVPN Conference Day 1 - Expanding Financial Inclusion

7/30/2019 AVPN Conference Day 1 - Expanding Financial Inclusion

1/16

Sector Drilldown:

Expanding Financial Inclusion

Speakers:

Ross Baird, Executive Director of Village Capital

Geoff Woolley, CEO of Unitus Impact

Christopher Happy Tan, CEO ofGrameen Foundation Asia

Moderated by:

Michael Fernandes, Partner at Leapfrog Investments


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Ross BairdExecutive Director

Village Capital


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3

Enterprises enabling financialinclusion


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Too often lack opportunity to succeed.

4

Venture Firms Not Providing Risk Capital

Of over 300 impact investment funds, fewer than 5 invest at


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Village Capitals role

5

Source 5,000 ventures/year (Frontier Market Scouts) Support ventures through programs with customer-focused curriculum:

300 ventures served in 18 programs worldwide Have made 30 investment commitments through peer-selected model 5,000 jobs created, 4 million customers served, $30 million in capital

leveraged


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6

Whats working?

Pre-committed risk capital Ecosystem coordination (philanthropy-early

stage; investment-later stage)

Local lead investors, operating partners Recruitment of ventures more critical thanmarketing

Investor as customer, entrepreneur as

beneficiary


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Geoff Woolley

CEO

Unitus Impact


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Limited Education Corruption Cultural Biases Political & Physical Security Poor Healthcare No Safety Net

Donor / Government Solutions

Business / Investment Solutions

Precarious Livelihoods

Limited Access to Capital

Affordable Housing

POVERTYis the result of:


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UNITUS: TRACK RECORDOF INNOVATION & RESULTS

IMPACT INVESTING FIRMInvesting to improve thelivelihoods of the poor in Asia

and achieve attractive financialreturns

IMPACT INVESTING FUND

INVESTMENT BANK

FOR SOCIAL

ENTERPRISES

NON-PROFIT

20062000 2008 2011

IMPACT INVESTING FIRM


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HIGHLIGHTED FINANCIAL INCLUSION INVESTMENTS

Kinara Capital

provides loans tosmall-to-medium

enterprises

(SMEs) in India

Micro Benefits is

Chinas first bluecollar employee

benefits provider

RUMA is the leading

seller of mobileminutes and other

digitally distributable

products in rural

Indonesia


11/16

Christopher Happy Tan

CEO

Grameen Foundation Asia


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The Problem of Low Population Density in

Rural Communities

Macrolevel:

The elements that allowed microcredit to work with

the cash flows of the poor (e.g., small amounts,

frequent collections, etc.) tend to push microlendingactivities towards higher density, mostly urban areas.

Microlevel:

Mismatch between the cash flow needs of the

agricultural poor (high upfront capital requirements,

no income until harvest, etc.) and the kind of

microenterprise lending many MFIs specialize in.


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Example: Poverty Incidence and

Microcredit Lending in the Philippines


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New Business Model Needed

Using mobile phones can significantly reduce

transactions costs for financial institutions

that want to serve remote communities

Connecting smallholder farmers to agricultural

value chains can significantly enhance their

business prospects


15/16

Sector Drilldown:

Expanding Financial Inclusion

Speakers:

Ross Baird, Executive Director of Village Capital

Geoff Woolley, CEO of Unitus Impact

Christopher Happy Tan, CEO ofGrameen Foundation Asia

Moderated by:

Michael Fernandes, Partner at Leapfrog Investments


16/16

Please proceed to the next sessions

Toolkits: 3.25 4.25pm

Effective Due Diligence: 4.1

Fundraising: MRA

Impact Assessment: 6.1 Mobilising Human Capital: 14

Documents

AVPN Conference Day 1 - Expanding Financial Inclusion