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Aavishkaar Capital, the impact investing arm of the Aavishkaar Group, has announced $130 million (about ₹1000 crore) first close of its sixth fund dedicated to India.
Talking to BusinessLine, Aavishkaar Capital Partner, Tarun Mehta said, “the final close of the fund is expected by the end of this calendar year at about $200 million. The firm will be investing in about 13-15 companies with this fund and the average ticket size of the investments will range from $3 million to $20 million.”
The fund is anchored by British International Investment (BII) – formerly known as CDC Group Plc., Swiss Investment Fund for Emerging Markets (SIFEM AG), Fund of Funds for Startups (FFS) and managed by Small Industries Development Bank of India (SIDBI) and Self Reliant India Fund (SRI Fund). The ‘Aavishkaar India Fund VI ’ will invest in businesses, largely MSMEs with technology as a key enabler in the core sectors of sustainable agri-tech, financial inclusion and essential services with a focus on climate-tech. Climate-tech investments could include companies working in EV (electric vehicles) sector, waste management and sanitation, among other areas.
2X Challenge
In addition, Aavishkaar India Fund VI will be the first 2x certified flagship fund in Asia. The fund has committed to ensure that 30 per cent of its underlying portfolio investments meet the 2x criteria, which is a gender lens investing tool under the 2X Challenge – an initiative launched by the development finance institutions (DFIs) of the G7 to deploy and mobilise capital to support projects that empower women as entrepreneurs, business leaders, employees and consumers.
Srini Nagarajan, Managing Director and Head of Asia, British International Investment, said, “Our strengthened partnership with Aavishkaar Capital is based on a joint objective to increase access to capital for early stage tech-driven businesses, enabling them to transition from proof of concept to growth in their operations. Aavishkaar’s proven track record in delivering impact positions it as an important co-investing partner with proven ability to facilitate greater financial support to India’s innovative entrepreneurs in businesses across sustainable agriculture, financial inclusion and essential services. We are proud that our latest investment, which forms British International Investment’s fourth commitment to this fund manager, will help accelerate scalable impact for low-income and underserved communities, creating more jobs and expanding economic opportunities throughout India.”
The AIF VI will be led by Aavishkaar Capital Partners Vineet Rai, Sushma Kaushik, Anurag Agrawal and Tarun Mehta and the team has a healthy deal pipeline with the first transaction expected to be consummated in Q1, 2023. Funds advised by Aavishkaar Capital have till date made 62 investments in India and recorded 38 full and partial exits.
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