Case | HBS Case Collection | February 2008 (Revised July 2008)

Banco Compartamos: Life after the IPO

by Michael Chu and Regina Garcia Cuellar


After an international IPO yielding extraordinary returns to original investors, Banco Compartamos, Mexico's leading microfinance institution, contemplates its future strategic and competing priorities: maintaining growth, defending industry, leadership, preserving social mission, and meeting the expectations of a demanding capital market. Additionally, Compartamos' Co-CEOs must decide how to face the highly polarized reactions in the microfinance industry to its IPO. In the process, the case examines the history of Compartamos, from its NGO origins to its license as a full-service bank; describes the competitive context of low-income sector of financing in Mexico; and reviews the decisions leading to the IPO in the Mexican Stock Exchange.

Keywords: Business Model; Microfinance; Initial Public Offering; Non-Governmental Organizations; Competition; Value Creation; Banking Industry; Mexico;


Chu, Michael, and Regina Garcia Cuellar. "Banco Compartamos: Life after the IPO." Harvard Business School Case 308-094, February 2008. (Revised July 2008.)