IFC considers investment in Indian SME-focused fund
International Finance Corp. (IFC), the World Bank’s investment arm, may invest up to $20 million in Pragati India Fund, a vehicle targeting small- and medium-sized enterprises (SMEs) in India’s low income states. The fund is aiming to raise $75-100 million in total.
Pragati India Fund, led by former investment banker Narayanan Shadagopan, will invest in increments of $5-10 million. It will look at companies in areas such as Jharkhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh and Orissa, which are home to around 421 million people defined as multi-dimensionally poor by the Oxford Poverty and Human Development Index, VCCircle reported.
Although officially sector agnostic, the fund will focus on healthcare, ancillary infrastructure services, ancillary oil and gas services, manufacturing and education.
Last October, CDC Group, the UK development finance institution, committed $50 million to Pragati India Fund. IFC was previously linked to Forum Synergies (India) PE Fund Managers' new vehicle, India Knowledge-Manufacturing Fund I, which has targeted a $150 million raise and will also target SMEs.
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