25 January 2008

Ujjivan Reaches 50,000 Customers Across India

Exactly 26 months after Ujjivan began piloting operations with its first branch in Koramangala, Bangalore, the company has reached over 50,000 of India’s poorest women in Karnataka, Delhi, and Kolkata. This milestone puts Ujjivan well on track to reach its goal of serving two million customers with microfinance by its sixth year of operations.

In the past 26 months, Ujjivan built up a network of 32 branches operating out of its three hubs, which have collectively disbursed more than Rs. 389 million in loans. Amidst this growth, the company maintained a 97.92% repayment rate.

Staff and supporters from across Ujjivan who have been involved since it began operations shared their thoughts on their involvement with the organization and its growth:

Sunil Patel, Ujjivan Board Member and Chartered Accountant and Management Consultant

“Ujjivan began with a very solid base of shareholders backing [Samit Ghosh, CEO] without any hesitation. Samit’s ideas where not really conventional: trying to enter microfinance with modern retail bank management methods which most thought would be too costly. Further, Ujjivan went for the NBFC route recognising that raising capital would be the key whereas most advised trust or section 25 structures. We avoided the “the pass through” partnership model of microfinance where banks maintained the borrower on their books. Ujjivan was focused on urban microfinance when most felt it could not be done for a mobile population (he understood that our low income settlements were really “villages” within cities!). Samit was able to attract a few people – professionals who were ready to work for nothing or little for a noble cause. He was able to get a good board of directors, which makes a lot of difference. He took a risk in accessing low cost (untried in India) software, but it worked out. Ujjivan was able to leverage its management resources to raise capital from reputed international entities and its capital raising in the span of time has made it one of the best capitalised in India. Most important, Samit was able to attract and retain human resources cost effectively (which meant that all employees are primarily goal oriented).

The combination of quality human resource acquisition, thinking unconventionally, and leveraging reputation and management resources should enable Ujjivan to reach the 6 million borrower mark.”

Viswanatha Prasad, Ujjivan Board Member and Fund Manager, Bellweather

"Ujjivan was set up at the time we were setting up Bellwether. We were excited by the opportunity to participate in a start-up institution where experienced banking professionals were setting up an ambitious new generation microfinance institution. Bellwether was operating from a business centre and had all of 200 sq. ft. as an office and our fund closing was still a few months away, which of course Samit would not know. So here he was, tired from an overnight bus ride from Bangalore and refreshed from a shower in the Yatrini which was near our office. Being a banker the discussions were smooth and his passion for microfinance was evident. His vision to build a large scale microfinance institution using the best of banking principles, starting in Bangalore, we felt was realizable. With a core team having built and run large retail operations in the past, Ujjivan already had a sound business plan in place. Bellwether had to come in with its capital well before Ujjivan even had a license to operate, and since we did not think the license would come anytime soon, we had to build an elaborate mechanism of financial compensation due to this risk and even before the ink dried on that plan, they had their license! And so began a story not long ago, of a new generation of microfinance institutions, just the type Bellwether as a specialist fund wanted to catalyze. The 50,000 clients reached by Ujjivan in such a short time is one part of the story. The other part, which is not so obvious, is the type of Women clients that these comprise of and the services they get, along with the treatment of a valued client. With 50,000 satisfied customers the Ujjivan story has not even begun……"

Caitlin Baron, Ujjivan Board Member and Director of the Michael and Susan Dell Foundation’s Global Microfinance Initiative

"I am so pleased to be able to offer my heartfelt congratulations to Ujjivan on the occasion of serving their 50,000 customer!

Samit and I first met over two and a half years ago when he was just conceptualizing Ujjivan and I was not yet in my current role at the foundation. From the earliest days, it was clear Samit intended to build a different kind of MFI. It is certain that this unique approach to microfinance has propelled Ujjivan across this major milestone – a focus on the urban poor; a deep, diversified, professional management team from day one; a significant upfront investment in back office systems and processes; an early move towards national coverage, valuable partnerships with other NGOs to deliver microfinance plus services – the list of distinguishing characteristics is long. Future efforts to incorporate impact assessment into the way in which Ujjivan does business and additional geographic expansion will further distinguish the institution in the field.

The future looks awfully bright!"

Ajit Grewal, Executive Director

"A new venture – starting with an assortment of people – bound together by the desire to work in the social sector, laid the foundations of Ujjivan in early 2005. With a majority of the people new to the business it is most likely we did not produce the best. We all did however try our best, tackled a new market place, and two years later with a lot of learning and hard work – from old and new we are at 50,000 customers. Our shareholders and partners need a vote of thanks for the confidence reposed in us.

The most difficult times are the early ones. Now with Prof. Yunus and the Nobel Prize, the added experience and wisdom, and a lot of new faces it should be easy to achieve a couple of million customers. Clearly Ujjivan will no longer be ‘small’. With it will come the changes associated with and necessary for growth and 2 million customers.”

Carol Furtado, Head of Operations

“The unique multi product offering to our customers combined with an efficient back end technology support facilitating centralized operations contributed significantly to achieving this milestone within such a short period. To reach our two million mark we will need to constantly improve and innovate our products and combine them with microfinance plus activities. We will also need to have efficient and cost effective technologies in place. A few initiatives like handheld technologies and data entry outsourcing would enable our back office staff to perform more value added activities with a greater focus on our core business.”

John Christy, Assistant Manager - Cash

“The contributions from our entire staff combined with a strong vision have enabled us to achieve rapid growth. Our head office staff is involved in all areas of the business, which is extremely helpful in our growth plans. Initially the staff was fresh and made some mistakes. We have learned a lot from our experiences and can now move forward with decisions that will bring us towards 2 million customers. When we implement change, it needs to be piloted first, and once perfected, quickly implemented across all of our branches.”

Lakshmi Devi, Area Manager

“I feel proud to be an Ujjivan employee during this milestone. We have had a positive response from our customers, and because of that they are spreading the word very quickly to other potential customers. If we continue to work hard and with the same sincerity, I believe we can reach 100,000 customers in the next 6 months.”

Elizabeth Rani, Customer Relationship Staff, Yeshwanthpur

“It feels very good to be part of Ujjivan since the beginning, and to now reach 50,000 customers. Hard work has helped us achieve success so far and if we continue we will reach many new achievements.”

Ammanna S., MIS Officer

“I am very proud to be a part of Ujjivan and work towards its mission to provide financial services to the economically active poor. We could not have achieved this milestone without the hard work of our field staff, and strong guidance from above. Going forward we need to continue working as a team, as we are now.”

Ujjivan's Head Office staff celebrate reaching 50,000 customers.

Back to Newsroom