Factors influencing new product development in microfinance institutions: a perspective from north Indian microfinance institutions

Sonata 

Finance 

Private 

Limited

Sonata Finance Private Ltd (Sonata) is a Non-Banking Finance Company (NBFC) 

with its registered office at Allahabad, Uttar Pradesh. Sonata began its micro 

finance operations in January 2006. In 2004, the concept of formation of 

a company registered under the section 25 of the Indian Companies Act, 

1956 for microfinance operations was underway. In 2005, the Board decided 

to approach equity investors for leveraging out more funds to expand the 

operations. In 2005 itself, discussions with Bellwether Fund brought a positive 

result to Sonata with Bellwether showing its interest in capital financing of a 

new NBFC. An NBFC was acquired by the promoters soon and the operations 

started in January 2006. In the month of August 2007, SONATA acquired the 

portfolio of Jeevika Livelihoods Support Organization based at Jabalpur in M.P., 

making its outreach to two major states in Central India.