IFC considers $20m commitment to IDG India fund

According to a disclosure, IFC also hopes to pursue co-investments and follow-on investments for companies supported by IDG Ventures India Fund III (IDG III), which launched last year with a target of $200 million. The IFC development finance institution believes that it can play a pivotal role providing growth capital as well as valuable experience in the fund’s sectors of focus.

On a longer-term basis, IFC expects its presence in IDG III to signal its confidence in the GP’s governance standards and stability, and thereby encourage participation in IDG’s next vehicle by a wider set of investors. It also plans to pass on its expertise in environmental and social sustainability to IDG’s portfolio companies.

IDG invests in technology-focused Indian companies at the Series A and B stages, with particular focus on companies connected to the consumer internet, software, health, and financial services sectors. Its recent commitments include a $3 million Series A round for business-to-business packaging marketplace Bizongo alongside Accel Partners and a $30 million Series C round, co-led by Tiger Global Management, in online home rental start-up NestAway.

IFC is a frequent investor in GPs targeting Asia’s emerging markets. Its commitments in the last year include $15 million to the debut fund of Philippines-based Sierra Madre Managers, $25 million for Maison Capital’s debut US dollar-denominated China fund, and $10 million to the second fund of Southeast Asia-focused Jungle Ventures. The DFI also committed up to $200 million in its own IFC Emerging Asia Fund, whose other investors include Korea Development Bank and the Fiji National Provident Fund.

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• Topics
• South Asia
• Venture
• Fundraising
• India
• IDG Ventures
• IFC