Grama Vidiyal Micro Finance

The story begins in 1986, when Grama Vidiyal was established as a public charitable trust in India. However, the key playbook move came in 2007, when it transformed into a regulated Non-Bank Financial Company (NBFC). This pivot, led by Chairman S. Devaraj, allowed Grama Vidiyal to take on equity capital and scale its mission of providing small, collateral-free loans to women in rural and semi-urban areas. The company focused on a double-bottom-line approach: financial sustainability and the social development of women and their families. By 2016, this strategy had proven successful. Grama Vidiyal had grown to serve 1.2 million customers across 319 branches in seven states, managing an asset book of over Rs 1,500 crore. The major turning point came in July 2016. In an industry-first move, IDFC Bank announced it would acquire 100% of Grama Vidiyal for an estimated Rs 300 crore. The acquisition was a strategic play for the recently-formed bank to rapidly expand its retail network into a massive rural customer base. Following the acquisition, Grama Vidiyal became a wholly-owned subsidiary of IDFC Bank and was later renamed IDFC Bharat Limited, continuing its work as a business correspondent for the bank.