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Impact investment firm Aavishkaar-Intellecap Group (AIG) has raised $32 million or Rs 227 crore from Nuveen, an investment management business of US-based Teachers Insurance and Annuity Association fund (TIAA). Nuveen has picked up a minority stake (slightly less than 26 per cent) in Aavishkaar-Intellecap Group and will have a representation in the latter’s board.
With assests under management of over $800 million, AIG plans to use the fresh equity to consolidate holding in its subsidiary companies -- microfinance (Arohan), SME lending (IntelleGrow) and financial tech platform (Tribe). Aavishkar is also one of the first investors in the current small finance banks such as Equitas and Suryodaya when they were micro-finance companies. It has also invested in companies such as AgroStar and MilkMantra, which started off to make an impact in their respective sector.
Aavishkaar will also use part of this fund to consolidate its presence in South East Asia and Africa.
Vineet Rai, Founder, Aavishkaar-Intellecap Group says, “As the world chases ambitious Social Development Goals, Aavishkaar-Intellecap Group’s contribution as entrepreneurial ecosystem builders is seminal in unleashing the entrepreneurial energy toward core challenges that the world desires to address. Nuveen, shares our vision and we hope to benefit hugely from its experience as a premier global asset manager with a proven track record in Impact investing.”
“We are working with poor people to help them make money and in return we make money by investing in them. We are investing in companies in states where no investor wants to go. Hence we have invested in lot of companies in the low-income states and creating employment there,” Rai said adding that many of its investee companies have reached at Rs 2500 crore valuation and are giving high returns.
Vijay Advani, Chief Executive Officer of Nuveen, said in the past impact investment was done through charity but in the last few years, investors globally have collected enough empirical data that says that impact investing can also give good commercial returns and in India, Aavishkaar is doing that.
“Aavishkaar is an excellent fit within our impact investing approach, which, among other goals, focuses on ways to make basic services available for low-income and underserved people around the world while also providing return opportunities for our clients. They have a terrific record of finding innovative solutions to help solve many of the key social and environmental issues of our day.”
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