Founded in 1997, Grameen Foundation was established to end poverty by turning Professor Muhammad Yunus’ vision of microfinance into a globally recognized concept, partnering with local organizations to lead programs in 78 countries. Grameen Foundation has harnessed technology to amplify impact and broadened its mission to include ending hunger through its merger with Freedom from Hunger in 2016, impacting over 29 million people since then. Today, Grameen Foundation (GFUSA) operates in the U.S. and globally with two subsidiaries and two independent affiliates. Grameen Foundation has created and spun off several social enterprise initiatives (Taroworks, MOTECH, and PPI) and partners with impact-driven enterprises. Through impact investing, Grameen Foundation invests in companies, funds, and joint ventures to create capital for social enterprises serving the poor, moving from a “funding” to a sustainable “financing” model enabling wins for investors and permanent escape from poverty. Current investments include Grameen Capital India, a financial advisory firm founded in 2008 helping socially focused organizations in India obtain capital, working with microfinance institutions, affordable healthcare providers, low-cost education firms and others; and Grameen Impact Investment India, a non-bank financial institution making loans to high impact social enterprises in sectors including financial services, affordable healthcare, affordable education, renewable energy, and sustainable agriculture.
Why it matters: The Grameen Foundation demonstrates that ending poverty requires moving from charitable funding to sustainable financing models that create permanent escape through impact investing and social enterprises rather than perpetual aid dependency. By partnering with local organizations in 78 countries and impacting over 29 million people, Grameen Foundation shows that scaling microfinance globally requires harnessing technology and creating social enterprises that can operate independently. The organization’s shift to investing in companies and funds whose products serve the poor—including Grameen Capital India and Grameen Impact India providing capital to social enterprises—proves that capital market investments can enable developing economies to grow while ensuring investors and the poor both benefit.
