CDC commits $10m to South Asia impact investor
The DFID Impact Fund, a social impact investment vehicle managed by UK-based development finance institution CDC, has made its first investment in South Asia, committing $10 million to the Insitor Impact Asia Fund.
Insitor aims to back businesses in India, Pakistan, Myanmar and Cambodia that provide low-income households with needed goods or services in sectors such as education, agriculture, energy and healthcare. The fund will invest in early and growth stage companies, according to a statement.
Insitor's other investors include a family office and a high net worth individual; it is currently seeking additional sources of capital, targeting a total fund size of $40 million. CDC has agreed to provide loss coverage to future investors that meet certain criteria.
The firm's investments in South Asia include a $2.5 million commitment to Indian education services provider Edubridge Learning, made in February alongside Acumen Fund, and a $500,000 investment in Indian medical equipment maker Biosense Technologies alongside GSF India.
CDC is investing GBP75 million ($106 million) through the DFID Impact Fund, which was launched in 2012 by the UK's Department for International Development, a shareholder of CDC. The fund invests in intermediaries that provide capital to businesses aiming to improve the lives of poor people in sub-Saharan Africa and South Asia.
CDC has been an active investor in companies fitting its development goals for South Asia. Earlier this year it committed INR3.3 billion ($50 million) to Indian microfinance lender Janalakshmi Financial Services, and last year it invested EUR50 million ($55 million) in Indian online retailer Daraz, which operates in Pakistan, Bangladesh and Myanmar.
The institution has also been active as an LP; it serves as one of the anchors in Rabo Equity Advisors' India Agri Business Fund II, which announced a first close of $80 million in December 2014. Rabo recently made a commitment to agrochemical firm Parijat Industries; while the exact amount of that investment was undisclosed, media reports have put it at about INR10 billion.
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