Grama Vidiyal Micro Finance Limited (GVMFL), a Tamil Nadu based microfinance institution, has raised $4.25 million from MicroVest and its existing investor Unitus Equity Fund in its second round of fundraising. Vinod Khosla, who had also invested in the first round of funding of GVMFL, has invested in this round too, through his non profit private foundation, Amar Foundation.
The company will use the funds for meeting its expansion plans. A part of the funds will also be used to meet the enhanced capital adequacy norms set by the Reserve Bank of India (RBI). Unitus Capital was the advisor in the transaction.