The Huruma Fund invests 8 million euros in Sindhuja Microcredit, its third equity investment in India

Fondo Huruma


• Co-financed by the European Union, FONPRODE, COFIDES and private investors

• Sindhuja Microcredit to provide loans to low income households and especially stands to benefit farmers and women

Noida, April 2, 2024. The Huruma Fund, managed by GAWA Capital and financed by the European Union, AECID (through FONPRODE funding), COFIDES, and private investors, has completed its third investment in India by acquiring a minority stake in the microfinance institution Sindhuja Microcredit to the tune of 8 million euros.

Sindhuja provides loans to low-income households and has extensive reach to women and farmers, also increasing exposure to the micro, small, and medium enterprise sector. Created in 2018, Sindhuja is present in nine states in northern India with a network of more than 220 branches and a high growth potential in disadvantaged areas. It supports more than 300,000 female clients and aims to reach more than 2.5 million by 2025.


Sindhuja has quickly become established as one of the fastest expanding microfinance institutions in India, achieving significant growth in just 5 years. The entity aims to launch a specific individual product for small agricultural producers and hopes to serve more than 1 million farmers by 2028.

GAWA Capital’s Head of Investments, Tomás Ribé, stated: “We are very happy to partner with Sindhuja and support them in their expansion into new geographies and products. We believe that Sindhuja can provide the necessary access to agricultural financing for smallholder farmers, a highly under-served segment in India”.

COFIDES’s Head of Partnerships for Development, José Carlos Villena, stated: “The Huruma Fund’s investment in this highly digitalized financial institution is aligned with the priorities of Spanish Cooperation, since it will especially contribute to supporting the launch of individual credit products, thus improving access to financing for women in rural areas (100% of clients)”.

Welcoming the equity investment in Sindhuja, Ambassador of the European Union Delegation to India, Herve Delphin, said: “Huruma Fund illustrates perfectly how #TeamEurope deploys innovative financing mechanisms to attract much needed private investments in partner countries. Experience has shown that EU contributions, by providing guarantees and reducing investors’ risks, allow to scale up funding by a ratio 1:9. We are proud that this serves an investment that will eventually facilitate access to finance of small farm holders, especially women, so they can expand their activities and improve their income”.


The Huruma Fund is the first project led by COFIDES within the framework of agriculture blending facilities in the European Union. Managed by GAWA Capital, it has 120 million euros contributed by the European Union, FONPRODE (the Development Promotion Fund) of the Spanish Agency for International Development Cooperation (AECID), COFIDES and private investors, thanks to the collaboration of CaixaBank Private Banking, which has distributed the fund through its national network. The objective is to provide access to loans to farmers in underserved rural areas in Latin America, the Caribbean, Sub-Saharan Africa and Asia. It includes a Technical Assistance Facility (TAF) to provide consulting services and training related to agriculture, and to help improve the entities the Fund invests in, enhancing the impact on excluded rural populations.


Established in 2010, GAWA Capital is the leading Spanish firm in impact investing, having mobilised over 204 million euros in public and private investments. Its objective is to improve the lives of low-income communities by promoting investing in social enterprises, while providing their investors with a financial return. GAWA was a pioneer in the introduction of impact investing in Spain, launching three funds which invest in emerging countries with an inclusive approach to market solutions for social issues.


COFIDES is a state-owned enterprise specialized in the management of State funds that provide medium- and long-term financing for private investments linked to different public policy purposes. COFIDES directly manages funds aimed at supporting the internationalization of Spanish firms, strengthening the solvency of companies severely affected by the COVID-19 pandemic, to attract foreign direct investment into Spain through co-investment deals and to contribute to the growth of the impact investment ecosystem in Spain. In addition, COFIDES supports the management of the financial cooperation portfolio of the Spanish Agency for International Development Cooperation, promoting sustainable development in emerging economies and developing countries. In the ownership structure of the Company, the Spanish State holds 53% of the equity. The remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).


The EU, which consists of 27 countries, has the world’s largest economy and its third largest population, after China and India. Though richly diverse, the countries that make up the EU (its ‘Member States’) are all committed to the same basic values: peace, democracy, the rule of law and respect for human rights. They have set up common institutions so that decisions on matters of joint interest can be made democratically at the European level. By creating a frontier-free single market and a single currency (the euro) which has been adopted by 20 Member States, the EU has given a significant boost to trade and employment. It is also at the forefront of policies on sustainability.

This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.