Lok Capital’s second fund closes at $65m

Transactions under the new fund will range from $2 million to $4 million, with an investment period of 4-6 years. The vehicle, launched in 2010, has secured commitments from existing investors including International Finance Corporation (IFC), CDC and KfW, as well as new investors Proparco and ASN Novib.

IFC, a founding investor in Lok Capital in 2006 and a participant in its $22 million inaugural fund, was said to have committed $15 million as an anchor investor for Lok II.

The new fund will look at sectors including financial institutions, micro-credit, mobile payments, remittances and small business lending. It will also seek opportunities in the vocational training, low-cost healthcare and education sectors.

Social venture capital funds have become a growing trend in India. Earlier this month, the Indian government was reported to be planning a $1 billion government-backed venture fund to support innovative companies that promise a better future to the poor. Talks are also underway with local and foreign investors, including banks, government agencies and IFC.

Commenting on the fundraise, Venky Natarajan, managing partner of Lok Advisory Services, said the firm is committed to partnering with entrepreneurs who are setting up and running profitable businesses while empowering the base of the pyramid.

"The need for building sustainable enterprises providing access to quality health, education and creating employment opportunities to the base of the pyramid is more critical now than ever," he added.

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• Topics
• South Asia
• Fundraising
• Venture
• Financials
• India
• International Finance Corporation
• Fundraising