IFC proposes $40m commitment to Kedaara’s second India fund

The fund, Kedaara Capital Fund II, launched last year and plans to target companies in the logistics, packaging, chemicals, pharmaceuticals and financial services sectors, according to an IFC disclosure. Its target size has not been announced, though Indian media reports have put it at around $650 million. IFC’s investment is to comprise no more than 20% of total commitments to the vehicle.

Kedaara closed its first fund in 2013 at $540 million, two years after its founding by former Temasek India head Manish Kejriwal. LPs in that vehicle included Temasek, the Abu Dhabi Investment Authority, and Ontario Teachers’ Pension Plan.

IFC expects Kedaara’s second fund to contribute to the job creation and financial inclusion goals of the development finance institution (DFI). Portfolio companies form the first fund have created nearly 12,000 new jobs, outperforming the average of IFC’s South Asia fund portfolio by three times. In addition, the fund’s financial services portfolio, which includes non-banking finance company Au Financiers and its spinout Au Housing, provides financial services to more than 1.6 million people in rural and lower-income areas.

IFC also plans to provide Kedaara with guidance on best practice and structuring and to help attract other international investors to participate in the fund, along with pursuing co-investment opportunities in select Kedaara portfolio companies.

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• Topics
• South Asia
• Fundraising
• LPs
• GPs
• India
• Kedaara Capital
• IFC