Vikram Akula The Unlikely Entrepreneur Who Built a Microfinance Empire

Vikram Akula is a true pioneer in the world of microfinance. He founded SKS Microfinance, a company that would go on to revolutionize the way small loans are provided to those in need.

Growing up in India, Akula was exposed to the struggles of poverty firsthand. This experience would later shape his vision for a more equitable financial system.

Akula's entrepreneurial journey began with a simple yet powerful idea: to provide small loans to people who were too poor to qualify for traditional bank loans. He saw an opportunity to create a new model that would empower the poor and help them break the cycle of poverty.

With a strong sense of purpose and a keen business sense, Akula set out to turn his vision into a reality.

For another approach, see: Credit Union Mortgage Loans

Vikram Akula grew up in Schenectady, New York, where his father, Akula V. Krishna, was a surgeon.

Akula graduated from Niskayuna High School in 1986.

He went on to attend Tufts University, where he graduated as a double major in philosophy and English with honors in 1990.

Vikram's academic pursuits took him to Yale University for a M.A. in International Relations, and he was awarded a Fulbright scholarship for an action-research microfinance project in India in 1994–95.

He completed his Ph.D. in Political Science from the University of Chicago in 2004.

In 2019-20, Vikram was a Distinguished Career Fellow at Stanford University.

Vikram Akula's impressive career and achievements are a testament to his dedication and innovative approach to social entrepreneurship. He received Time magazine's 100 Most Influential People of the Year in 2006.

Akula's work with SKS has earned him numerous awards and recognition. He was named Social Entrepreneur of the Year in India in 2006, and Ernst & Young Entrepreneur of the Year in India (Start-up) in the same year.

Some of his notable awards include India Today's 50 Most Powerful People in 2009, and Forbes India's Person of the Year nominee in 2009. He also received the Godfrey Phillips National Bravery Award in 2010, and the World Economic Forum's Young Global Leader award in 2008.

As a successful entrepreneur, Vikram Akula's journey to becoming a tycoon was far from ordinary. He completed his Ph.D. in 2004 from the University of Chicago.

Akula's first foray into business was with Swayam Krishi Sangam (SKS), a non-profit he set up in 1997 to implement a business plan for a for-profit microfinance company. SKS converted to the for-profit SKS Microfinance in 2005.

SKS Microfinance secured a significant round of equity investment of $11.5 million in March 2007, led by Sequoia Capital. This was a crucial step in the company's growth.

In 2008, SKS raised an additional $75 million in equity investment, the largest equity investment raised by an MFI at that time. This investment came from various sources, including Infosys founder Narayan Murthy and Bajaj Allianz.

SKS Microfinance had a highly successful initial public offering (IPO) in 2010, which raised $350 million and was oversubscribed 14 times. This included anchor investors such as George Soros.

Here's a brief timeline of Akula's major achievements:

Akula has received numerous awards for his work with SKS, a testament to his dedication and impact.

He was named one of Time magazine's 100 Most Influential People of the Year in 2006.

In 2006, he also received the Social Entrepreneur of the Year in India award.

Ernst & Young recognized his entrepreneurial spirit with the Entrepreneur of the Year in India (Start-up) award in 2006.

He received a similar award from Ernst & Young in 2010, this time for Entrepreneur of the Year in India (Business Transformation).

India Today included him in their list of India's 50 Most Powerful People in 2009.

He was also a nominee for Forbes India's Person of the Year in 2009.

Akula was awarded the Godfrey Phillips National Bravery Award in 2010.

He was honored with the World Economic Forum’s Young Global Leader award in 2008.

Akula was also a fellow of the Echoing Green Poverty Alleviation Economic Development program in 1998.

He received the Karmaveer Puraskaar Noble Laureates award in 2006-2007.

Here are some of the notable awards he received:

Bharat Financial was founded in 1993 by Vikram Akula, who served as its Managing Director until 2009.

Vikram Akula's vision for Bharat Financial was to provide small loans to low-income individuals, often referred to as microfinance.

Bharat Financial was initially called SKS Microfinance, but was later renamed to reflect its broader focus on financial services.

Worth a look: Green Microfinance

Bharat Financial, a pioneer in microfinance, has been successful in scaling its operations by applying global business best practices. It uses a profit-oriented model to overcome capital constraints.

The company has leveraged technology to automate processes and lower costs, much like SKS Microfinance, known as the Starbucks of Microfinance. This has enabled Bharat Financial to standardize and automate microfinance processes.

Bharat Financial has created its own automated Management Information System (MIS) that allows field staff to manage independently, just like SKS Microfinance. This has been a key factor in the company's sustained growth rates.

By using technology to automate processes, Bharat Financial has been able to lower costs and increase efficiency. This has enabled the company to achieve significant growth rates.

Take a look at this: Bharat Masrani

Vikram Akula makes serious allegations against Bharat Financial's top officials.

MR Rao was accused of tracking Akula's phone calls during his days at SKS.