Indigo Financiera

New Horizon Investment Club

In my previous post I discussed the vision of small groups organized as hometown associations becoming the source of investment capital for their communities of origin.  This summer I had the pleasure of meeting José Francisco Ávila, a Hondoran immigrant who is the founder of the New Horizon Investment Club, a group composed of Afro-Caribean Honduran immigrants who have pooled their capital to make productive investments.

2. Vision and Mission

Our Vision

• Create a for profit solidarity branded, high volume, low cost financial services company for unbanked diaspora communities

• Create a non-profit micro-equity venture fund that makes successful and profitable investments in microfinance institutions and small and medium size enterprises founded or managed by transnational workers or entrepreneurs in their communities of origin.

Our Mission

• To transform transnational workers from passive senders of money to active grass-roots micro-investors for their home countries.

1. What is Indigo?

Introduction

Indigo is a radical proposal to develop a micro-private equity fund whose source of capital comes from profits generated by a remittances service business initially targeted toward the US Mexican diaspora. Inspired by the pioneering company Working Assets, the remittances service provides a sustainable business model that allows the Indigo fund to invest in microfinance institutions and small and medium size enterprises and take more risks in this underserved market.

 

Our belief is that diaspora are an underutilized resource for fighting global poverty.  Remittances are one of the tangible touch points by which the diasporas stay connected to their extended families and communities in their home countries.  At present, remittances are used for meeting basic family needs – food, clothing, education, basic healthcare.  However, if looked at through a different lens, these funds are also a form of micro-investment, a form of extremely informal small scale angel capital.  The purpose of Indigo is to amplify and augment these angel investments through an aggregated investment fund that is built indirectly by remittance fees paid by the poor that in turn invests in them.

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