Press Releases

NEW DELHI, India (February 20, 2008) - The Soros Economic Development Fund (SEDF), Omidyar Network, and Google.org announced today that they are working together to create a new $17 million Small-to-Medium (SME) 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, named SONG 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.”

Many small-to-medium Indian businesses lack formal funding options because of a market gap between the microloans offered by microfinance institutions and the larger investments of commercial banks and private equity funders. Most of the existing SME funds make investments in the $3-$5 million range, leaving out a significant portion of this market. SONG Investment Company will target this “missing middle” with equity investments between $500,000 and $3.5 million.

“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’s Global Development team. “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 SONG Investment Advisors 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, will be a Senior Advisor.

“SONG Investment Advisors will hire an experienced Investment Advisor and two experienced senior investment analysts based in India to recommend and build the pipeline of portfolio investments.”

About Soros Economic Development Fund

The Soros Economic Development Fund (SEDF) is a nonprofit private foundation. It is part of the network of charitable foundations created by investor and philanthropist George Soros. Established in 1997, the fund’s mission is to alleviate poverty and community deterioration. The fund makes investments—in the form of equity, loans, guarantees and deposits—in selected banks, microfinance institutions, cooperatives and social enterprise projects worldwide. To learn more about Soros Economic Development Fund, please visit http://www.sedfny.org.

About Omidyar Network

Omidyar Network is a philanthropic investment firm committed to building opportunity for individuals. Established by Pamela and Pierre Omidyar, the founders of eBay, Omidyar Network supports nonprofit and for-profit efforts that enable people around the world to improve their lives and make powerful, lasting contributions to their communities. Since 2004, Omidyar Network has funded a number of organizations in areas such as microfinance, participatory media, and transparency in government. To learn more about Omidyar Network, please visit http://www.omidyar.net.

About Google.org

Investment Partnership Targets “Missing Middle” of India’s Small-to-Medium (SME) Space

Hyderabad, India (January 1st, 2009) - SONG Investment Advisors India Private Limited, Soros Economic Development Fund (SEDF), Omidyar Network, Google and the Indian School of Business (ISB) announce today a partnership to create significant job opportunities within the SME space in India.

SMEs are a historical driver of change and the most powerful engine of socio-economic development. They are the largest employment generator within an economy, which is crucial as surplus labor is released from productivity gains in agriculture-labor that will need to be rapidly absorbed into a formal economy.

While the microfinance movement has had a significant impact on making capital available to entrepreneurs, and while large businesses have been able to access bank-based credit, SMEs remain underserved; unable to find the tools, talent and finance necessary for growth and expansion. They are the “Missing Middle.”

Vishal Vasishth is founder of the newly created company, SONG Investment Advisors India Private Limited, based out of the Indian School of Business in Hyderabad, India. SONG will invest in SME companies in India in order to catalyze greater investment in this sector.

“Great opportunity exists to create a systematic change toward poverty reduction and improving our collective quality of life by investing and growing in appropriate market based solutions,” said Vasishth. SONG Investment Advisors plans to build a pipeline of portfolio investments that are aligned with their mission.

After working for Revolution LLC, and previously for Patagonia, Inc., Vasishth is ready to apply his operational skills to help grow the emerging companies in the SME space in India.

“One of the most important things I took away from my previous business experience is that you can do well financially and do good at the same time.”

“By helping build and scale products and service solutions in sectors such as agriculture and food, healthcare, education and training, business services and basic utilities like water, waste management, energy, budget housing and financial services, we can create inclusive growth in India while building value for all,” said Vasishth.

About SONG Investment Advisors India Private Limited

SONG Investment Advisors India Private Limited is company focused on investing in the SME space in India. Established by Vishal Vasishth, and aligned with the Indian School of Business, SONG’s mission is to build great SME businesses that will create value for all. For more information,
visit http://www.songadvisors.com.

About Soros Economic Development Fund

The Soros Economic Development Fund (SEDF) is a nonprofit private foundation. It is part of the network of charitable foundations created by investor and philanthropist George Soros. Established in 1997, the fund’s mission is to alleviate poverty and community deterioration. The fund makes investments-in the form of equity, loans, guarantees and deposits-in selected banks, microfinance institutions, cooperatives and social enterprise projects worldwide. To learn more about Soros Economic Development Fund, please visit http://www.sedfny.org.

About Omidyar Network

Omidyar Network is a philanthropic investment firm committed to building opportunity for individuals. Established by Pamela and Pierre Omidyar, the founders of eBay, Omidyar Network supports nonprofit and for-profit efforts that enable people around the world to improve their lives and make powerful, lasting contributions to their communities. Since 2004, Omidyar Network has funded a number of organizations in areas such as microfinance, participatory media, and transparency in government. To learn more about Omidyar Network, please visit http://www.omidyar.net.

About Google.org

Google.org, the philanthropic arm of Google, uses the power of information and technology to help people improve their lives. They develop and invest in tools and partnerships that bring shared knowledge to the world’s most pressing challenges in the areas of climate change, economic development and global health. For more information, visit http://www.google.org.