How To IPO Successfully and Responsibly: Lessons From Indian Financial Inclusion Institutions

Initial public offerings (IPOs) are widely viewed as markers of commercial success. However, in the financial inclusion industry, IPOs are sometimes viewed with suspicion, if not alarm. This paper examines the 2016 IPOs of two Indian microlenders – Equitas Holdings and Ujjivan Financial Services – and how "hardwiring" their missions into their operations and corporate culture helped drive their success.

Though still in their early days, the two 2016 IPOs analyzed in this paper provide evidence that the IPO route can be used to increase scale and capabilities without compromising the core social mission of the institution. The experience of these two companies suggests how a responsible financial services company can position itself to go public while maintaining its social mission.