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Aavishkaar India Fund VI

The Aavishkaar India Fund (AIF) VI is a private equity fund that invests in small to mid-cap companies across India, primarily in the financial inclusion, sustainable agriculture, and essential services sectors. The Fund will largely follow a similar strategy as its five predecessor funds by investing in around ten to twelve companies, with the objective to provide growth capital to support businesses that target low- and middle-income consumers and households. SIFEM provides USD 15 million to this Fund, which has a USD 250 million target. The Fund is managed by Aavishkaar Capital, a leading fund manager with a strong track record of investments targeting the poorest populations (Base of the Pyramid – BOP) in India.

Aavishkaar India Fund VI

The Aavishkaar India Fund (AIF) VI is a private equity fund that invests in small to mid-cap companies across India, primarily in the financial inclusion, sustainable agriculture, and essential services sectors. The Fund will largely follow a similar strategy as its five predecessor funds by investing in around ten to twelve companies, with the objective to provide growth capital to support businesses that target low- and middle-income consumers and households. SIFEM provides USD 15 million to this Fund, which has a USD 250 million target. The Fund is managed by Aavishkaar Capital, a leading fund manager with a strong track record of investments targeting the poorest populations (Base of the Pyramid – BOP) in India.

About the fund

SIFEM’s investment in Aavishkaar India Fund VI is expected to contribute to long-term private sector growth but also to provide much needed risk capital to help businesses weather the difficult economic environment resulting from the COVID-19 pandemic. By investing in both innovative and established businesses, the Fund is expected to contribute significantly to job creation (SDG 8). The Fund also tackles the funding gap for MSMEs (SDG 9) and contributes to providing better access to goods and services for the poorest populations, which in turn can help reduce inequalities in India (SDG 10). Indeed, the Fund Manager has previously demonstrated that the bulk of its investments are made in companies which operate in low-income segments with an average minimum wage that is typically between USD 3 to 4 a day.

In addition, Aavishkaar possesses a detailed Impact Measurement Framework which outlines how impact is integrated into the investment processes and which provides a clear structure for the Fund to support portfolio companies in their own development of impact.

Investments by the fund

             
Date Name Country Industry Status
2022 Company 1 India Education Active
2022 Company 2 India Other financial services Active
Reference code
2022-02
Status
Active
Date of commmitment
December 2021
Date of exit
-
Fund size
USD
250,000,000
SIFEM commitment
USD
15,000,000
Asset class
Private Equity
Investment strategy
Investment through Fund
Fund manager
Aavishkaar Capital