India impact investments total $390m in 2013 - Unitus

The firm’s India Impact Equity Investment Report 2013 said the impact investment sector was relatively nascent, with around two-thirds of impact investments involving early-stage businesses. However, the report also noted a significant growth in seed-stage and micro-seed stage investments, which it predicts will pave the way for a 30% increase in impact deal-flow in 2014 .

Financial services featured most prominently, accounting for 22 transactions last year, followed by agri-business and health care with 17 and 13 transactions, respectively.

The report also noted an increase in the participation of new global investors  and the emergence of new rupee-denominated impact funds including Incube Ventures, Charioteer Fund-I and Unitus Seed Fund which all obtain SEBI approval under the new AIF regulations in the past year.

According to Unitus, the most active players in the impact equity investing space in India included their own Unitus Seed Fund for seed investments, Aavishkaar for Series A and B investments and International Finance Corporation for growth stage investments. Collectively, the three were responsible for 22 transactions involving impact businesses.

Notable transactions included: microfinance institution (MFI) Janalakshmi Financial Services which raised INR3.25 billion ($52.8 million) from investors in August; Satin Creditcare Network, another MFI, which managed to raise INR140 million in April, whilst paving an exit for previous backers Lok Capital in April; and Forus Health, which recently managed to raise $8 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Healthcare
• Early-stage
• India
• seed
• healthcare
• Financial Services