Case | HBS Case Collection | March 2017

SKS Microfinance (Abridged)

by Shawn Cole and Theresa Chen

Abstract

Vikram Akula, CEO of SKS Microfinance, seeks a venture capital investment to fund his firm. SKS, one of the largest and fastest growing microfinance institutions in India, is a profitable, for-profit institution with a social mission. In what is one of the first commercial financing deals in the world, Akula must decide at what value to sell equity in SKS and to whom to sell it. The case focuses on valuation, which is difficult because at the time there are no publicly traded comparable companies, as well as the strategic aspects of raising money.

Keywords: For-Profit Firms; Venture Capital; Microfinance; Corporate Social Responsibility and Impact; Valuation; Financial Services Industry; India;

Language: English Format: Print 17 pages EducatorsPurchase

Citation:

Cole, Shawn, and Theresa Chen. "SKS Microfinance (Abridged)." Harvard Business School Case 217-069, March 2017.

Related Work

  1. Supplement | HBS Case Collection | March 2017

    Microfinance in India 2010-2016: Crisis and Recovery

    Shawn Cole, Vikram Gandhi, Caitlin Reimers and Yannick Saleman

    SKS, India's leading microfinance firm, is challenged when politicians declaim microfinance as exploitation of the poor and severely restrict business practices.

    Keywords: Microfinance; Government Administration; Policy; Capital Markets; Crisis Management; Poverty; Financial Services Industry; India;

    Citation:

    Cole, Shawn, Vikram Gandhi, Caitlin Reimers, and Yannick Saleman. "Microfinance in India 2010-2016: Crisis and Recovery." Harvard Business School Supplement 217-070, March 2017.  View Details
    CiteView Details Related

About the Author

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Shawn A. Cole
John G. McLean Professor of Business Administration
Finance

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