This book is a scholarly account on how microfinance – which started with a mission of social transfer – was transformed into a sustainable commercial business venture over the last three decades. It tries to identify the role of impact investment in transforming microfinance sector and deep dives into the factors behind the successful transition of Bandhan, Equitas and Ujjivan into leading banks in India. The book draws some policy recommendations to further deepen and broaden financial inclusion in the country. Contents 1. Introduction 2. Literature Review 3. Evolution of Microfinance in India 4. Theory of Impact Evaluation 5. Research Methodology 6. Impact of Group Lending on Households 7. Analysis of Microfinance Instituions 8. Transformation of Microfinance Institutions 9. Conclusion and Policy Implications Bibliography Appendix 2.1 : Summary of Literature Reviewed Appendix 3.1 : Milestones in the Evolution of Microfinance in India Appendix 3.2 : Typical Loan and Insurance Products of MFIS Appendix 3.3 : MFI Lifecycle Stages and Focus Appendix 3.4 : Investor Return Expectations Appendix 4.1 : Measurement Tools Applied by Impact Investors in India Appendix 4.2 : Bill and Melinda Gates Foundation, Seattle, Usa Appendix 4.3 : Aavishkaar Venture Management Services, India Appendix 4.4 : Caspian Impact Investments, India Appendix 4.5 : Maanaveeya Development and Finance Private Ltd., India Appendix 4.6 : Lok Capital, India Appendix 4.7 : SIDBI Foundation for Microcredit (SFMC), India Appendix 7.1 : Mathematical Specification of the DEA Approach Appendix 7.2 : Summary Technical Efficiency CRS Outreach Appendix 7.3 : Summary Outreach Efficiency VRS Appendix 7.4 : Partial List of Investor Survey Respondents Appendix 8.1 : Focus Group Discussion Questions About the Author Manab Chakraborty is a serial entrepreneur, and a microfinance practitioner. He founded several social enterprises to promote micro enterprises, environmental advisory services, and marketing of healthy food. He consults for UN agencies, international organisations and private companies in Asia and Africa. He is passionate about creating wealth at bottom of the pyramid. He has a Phd in impact investment from Department of Business Economics, University of Delhi; MBA from Kellogg Business School and Hong Kong University of Science and Technology; MSc in Environmental Economics from University College London, and MA in Rural Development from the International Institute of Social Studies, Erasmus University, The Hague, Holland.