DFC backs Openspace, Chiratae funds
The US International Development Finance Corporation (DFC) – formerly the Overseas Private Investment Corporation (OPIC) – has made commitments to funds being raised by Southeast Asia-focused Openspace Ventures and India’s Chiratae Ventures.
These were two of seven investments, totaling $622 million, made by the development finance institution (DFI) during the first quarter with a view to advancing the global COVID-19 response, promoting gender equity, and driving development in low and lower-middle-income countries. It approved 17 investments worth nearly $873 million in total.
DFC has allocated up to $30 million to an Openspace fund that targets mid- and later-stage venture investments. This would appear to be OSV+, the firm’s growth-stage vehicle that will primarily participate in follow-on rounds for standout portfolio companies. Openspace closed its third flagship fund, which focuses on Series A and B rounds, at the hard cap of $200 million earlier this year.
Chiratae will receive $20 million for its fourth fund, which has a target of $275-300 million. DFC would not be the only DFI participant, with UK-based CDC Group announcing a commitment of $10 million last year. Chiratae backs technology-enabled businesses across healthcare, financial services, agriculture, and consumer, as well as deep-tech and software-as-service start-ups.
“DFC's investments will continue to tackle the most pressing issues facing the developing world, including the COVID-19 pandemic, gender inequality, and food insecurity,” Dev Jagadesan, the agency’s acting CEO, said in a statement.
Other Asia-based investments include loans to DFCC Bank and National Development Bank in Sri Lanka, support for the construction of Fulbright University Vietnam’s new campus, a loan to agriculture-focused Indian non-banking financial company (NBFC) AryaDhan Financial, and India mortgage financing to be channeled through India Shelter Finance Corporation and Motilal Oswal Home Finance.
DFC, which has a $60 billion budget, is a combination of OPIC and USAID’s Development Credit Authority. It makes private sector investments in energy, healthcare, critical infrastructure, and technology across emerging markets, as well as providing financing for small businesses and women entrepreneurs.
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