IFC Plans ₹303.9 Cr Investment in A91 Partners’ Third Fund
The International Finance Corporation (IFC), the private lending arm of the World Bank, is planning an equity investment of up to about ₹303.9 crore into the venture capital firm A91 Partners’ third fund. This significant investment is part of the IFC’s strategy to support the growth of the Indian startup ecosystem and promote innovation in the country.
According to a disclosure, the IFC is also considering an additional co-investment of up to ₹260.5 crore into the new fund, which would further boost the fund’s corpus and enable it to make more investments in promising startups.
A91 Partners is a well-known venture capital firm that has a strong track record of investing in Indian startups. The firm has previously backed companies such as Byju’s, Ola, and PolicyBazaar, among others. The firm’s third fund is likely to focus on investing in startups across various sectors, including fintech, healthcare, and education.
The IFC’s investment in A91 Partners’ third fund is part of its broader strategy to support the growth of the Indian startup ecosystem. The IFC has been actively investing in Indian startups and venture capital funds in recent years, with a focus on promoting innovation and entrepreneurship in the country.
In 2020, the IFC invested ₹1,200 crore in the venture capital firm, Chiratae Ventures’ second fund, and also invested ₹200 crore in the fintech startup, ZestMoney. The IFC has also invested in other Indian startups, including the education startup, Byju’s, and the healthcare startup, PharmEasy.
The IFC’s investment in A91 Partners’ third fund is likely to be a significant boost for the fund and the startups it invests in. The fund is expected to focus on investing in startups that have the potential to scale rapidly and make a significant impact in their respective sectors.
The Indian startup ecosystem has been growing rapidly in recent years, driven by factors such as increasing internet penetration, growing demand for digital services, and the availability of venture capital funding. The ecosystem has given rise to several successful startups, including unicorns such as Byju’s, Ola, and Paytm.
However, the ecosystem still faces several challenges, including the lack of access to funding, regulatory uncertainties, and the need for more skilled talent. To address these challenges, the IFC’s investment in A91 Partners’ third fund is likely to be an important step in promoting the growth of the Indian startup ecosystem.
In conclusion, the IFC’s plan to invest ₹303.9 crore in A91 Partners’ third fund is a significant development for the Indian startup ecosystem. The investment is likely to support the growth of the ecosystem and promote innovation and entrepreneurship in the country. As the IFC continues to invest in Indian startups and venture capital funds, it is likely to play an important role in promoting the growth of the ecosystem and helping Indian startups to scale globally.
Source: https://inc42.com/buzz/ifc-mulls-65-mn-investment-in-a91-partners-third-fund/
