International Finance Corporation proposes investment into A91 Partners’ third fund
The proposed investment includes an equity investment of up to $35 million and an additional co-investment of up to $30 million.
The International Finance Corporation (IFC) is deliberating an investment into the venture capital firm A91 Partners’ third fund, according to a disclosure on the firm’s website.
IFC, which is part of the World Bank Group, is a United Nations agency that invests in private sector growth in developing countries. The institution is proposing an equity investment of up to $35 million and an additional co-investment of up to $30 million into the new fund.
The investment would be part of the mid-stage VC firm’s third fund which is targeting $675 million in total commitments, making it the VC’s largest ever fund.
According to the disclosure, the new fund will look to provide capital to small and mid-market companies across consumer, financial services, healthcare, manufacturing, and technology.
The fund is expected to have an average ticket size in the range of $10 million to $50 million across 15 companies.
Founded in 2018, Mumbai-based A91 had closed its first fund with a target corpus of $350 million; three years later, it raked in $550 million for its second fund.
A91's portfolio companies include dairy products startup Akshayakalpa, speciality coffee brand Blue Tokai, and beauty and personal care brand Sugar. Its portfolio company Go Digit General Insurance, an insurance distribution firm,, went public last year.
IFC's investment also comes at a time when Indian VC firms are busy raising new funds as capital flow in the country gradually picks up. For instance, Accel in January launched its $650-million eighth India-focused fund and, most recently, Bessemer Venture Partners earmarked $350 million of capital to its second India dedicated fund.
Edited by Swetha Kannan