Report: MFI investors have to wait a while to reap benefits of digitization in India
Private equity investors seeking to earn handsome return from India’s microfinance sector may need to be patient as the process of digital transformation in microfinance companies is likely to take time to show dividend and may not be tangible immediately.
“The investors may need to be patient during the period of transition and leverage their experience to support MFIs to undergo a smooth transition,” said MicroSave, a Lucknow-based global financial inclusion consulting firm.
Investors generally tend to measure the success of their investment based on the growth of portfolio, profitability of the MFIs and consequently their return on investments.
Photo courtesy of Andrew Magill.