The Soros Economic Development Fund (SEDF), Omidyar Network, and Google.org have announced that they are working together to create a new $17 million Small to Medium Enterprise Investment Company for India to create job opportunities and spur greater economic participation for a larger segment of the population. This joint Investment Company is expected to provide capital to small and medium businesses in underserved markets.

"With this investment, we will meet the huge demand to serve smaller businesses in India that have little access to finance," said Neal DeLaurentis, Vice President of Soros Economic Development Fund.
"Long ignored by commercial capital markets, small and medium businesses are an attractive investment opportunity as well as an engine for economic growth for India."

"We have seen what microloans can do at the individual level and are excited about bringing that same opportunity to small and medium businesses," said Jim Bunch, Director of Investments at Omidyar Network. "A new generation of entrepreneurs and their families will benefit economically and socially, and as their enterprises grow, these benefits can be shared with employees and their families, as well as the community at large."

"While SMEs in rich countries represent half of GDP, they account for a much lower portion in developing economies like India, partly because SMEs don’t have access to the same type of financing," said Sonal Shah of Google.org. "Our goal is to increase the flow of capital to SMEs in India. This is an important step in helping to attract commercial capital and reduce dependency on philanthropy or soft capital to fund this industry."

SEDF, Omidyar Network and Google.org plan to locate the Investment Advisor at the Indian School of Business (ISB) in Hyderabad to leverage the school’s SME expertise. Dr. Reuben Abraham, currently the ISB’s Director of the Base of Pyramid Lab and a board member of SEDF, is expected to be Senior Advisor.

The Investment Company will hire an experienced Investment Advisor and two experienced senior investment analysts based in India to recommend and build the pipeline of portfolio investments.