From extensive experience in microfinance - the business of providing financial services to low-income sectors of the population - IGNIA is deeply familiar with the needs of the Base of the Pyramid (BoP). IGNIA believes the major opportunity now is to apply this knowledge and expertise at the BoP to other high-impact areas that, like microfinance, are essential to the population but which currently are characterized by deficient value proposals. These include healthcare, housing, education, basic services (including water, energy, technology and telecommunications.) By investing in these areas, IGNIA seeks to relieve the key constraints limiting the potential of the majority of the people while generating superior financial returns.

Microfinance has usually been associated with loans and savings but now increasingly encompasses a wide array of financial products. It is a leading example of a BoP business built on providing a much better value proposal to a basic service in high demand, and through models capable of efficient and consistent delivery within the cash means of the poor, also able to generate commercial returns equal or superior to activities of equal risk. The commercial success of microfinance highlights both the deep differences between business models at the top and the base of the socioeconomic pyramid and the high financial value that can be unlocked.

For more information please reference: Chu, Michael. “Commercial Returns at the Base of the Pyramid” in Innovations (Quarterly) Winter/Spring 2007, Vol.2, No 1-2. MIT Press Journals, Pages 115-146.