CDC backs India impact investment fund
CDC Group has committed $25 million to Aavishkaar Venture Management’s latest India impact investment fund, which is targeting $200 million for deployment in small and medium-sized enterprises (SMEs) that serve poorer communities.
Aavishkaar Bharat Fund – the fifth vehicle raised by the GP – has completed a first close of $92 million, according to a CDC statement. It will concentrate on high social impact sectors such as agriculture, financial services, healthcare, waste and sanitation, renewable energy and logistics.
Aavishkaar’s funds have made 58 investments across India, Indonesia, Sri Lanka and Bangladesh, which have generated 250,000 jobs and reached 70 million beneficiaries, more than half of whom are women. The people reached by Aavishkaar investments in India are typically low and lower-middle income with annual household income of less than $7,700.
Recent investees include Milk Mantra, a dairy supply chain operator that sources milk from 46,000 smallholder farmers through collection centers across 400 villages; Nepra, a waste management business that recycles cardboard, plastic, and paper collected by more than 1,600 waste pickers in Ahmedabad; and Agrostar, a last-mile distributor of agricultural products.
Founded in 2001, Aavishkaar Venture Management is part of the Aavishkaar-Intellecap Group, which earlier this year received $25 million from Triodos Investment Management and the Shell Foundation. CDC previously invested $25 million in Aavishkaar India II, a 2011 vintage vehicle that closed at $94 million in 2011, and $15 million in microfinance vehicle managed by the GP, which raised $30 million in 2012.
“With our new $25m commitment to the Aavishkaar Bharat Fund, CDC is pleased to continue supporting the Aavishkaar team as it increases its investment activity in India’s underserved communities. Aavishkaar’s track record and experience put it in a good position to continue backing businesses that create economic opportunity and affordable products and services,” said Muru Murugappan, director for Asian funds at the UK-based development finance institution.
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