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 set to make a significant investment in the venture capital firm A91 Partners’ third fund. According to a recent disclosure, IFC is planning an equity investment of up to ₹303.9 crore ($40 million) into the new fund.
This investment is expected to be a strategic move by IFC to support the growth of A91 Partners, which focuses on investing in early-stage startups in the technology and healthcare sectors. The firm’s previous funds have seen significant returns, with its second fund, which closed in 2020, reportedly returning over 3x to its investors.
In addition to the equity investment, IFC is also considering an additional co-investment of up to ₹260.5 crore ($35 million) into the new fund. This co-investment would be made alongside other investors, including institutional investors, family offices, and high net worth individuals.
A91 Partners’ third fund, which is still in the process of raising capital, is expected to have a total corpus of around ₹1,500 crore ($200 million). The fund will focus on investing in startups that have shown significant potential for growth and scalability, with a particular emphasis on the technology and healthcare sectors.
The investment from IFC is expected to be a significant vote of confidence in A91 Partners’ investment strategy and the potential for growth in the Indian startup ecosystem. IFC has a strong track record of investing in early-stage startups and has made significant investments in Indian startups in the past, including in companies such as Ola, Paytm, and Byju’s.
A91 Partners was founded in 2016 by Anand Shah, who previously worked at Sequoia Capital and Matrix Partners. The firm has already made several successful investments, including in companies such as PharmEasy, CureFit, and Zomato. Shah said in a statement, “We are excited to have IFC on board as an investor in our third fund. Their expertise and investment philosophy align well with our own, and we believe that their support will be instrumental in helping us achieve our goals.”
The investment from IFC is also expected to be a significant boost to the Indian startup ecosystem, which has seen significant growth in recent years. The country has become one of the most attractive destinations for startups, with many companies raising significant funding rounds from investors around the world.
The investment from IFC is also expected to create jobs and stimulate economic growth in the country. According to a report by the Department for Promotion of Industry and Internal Trade (DPIIT), the startup ecosystem in India has created over 50,000 jobs in the past two years alone.
In conclusion, IFC’s planned investment in A91 Partners’ third fund is a significant development in the Indian startup ecosystem. The investment is expected to support the growth of A91 Partners, which has already made several successful investments in the technology and healthcare sectors. The investment is also expected to create jobs and stimulate economic growth in the country, making it a positive development for the Indian economy.
Source: https://inc42.com/buzz/ifc-mulls-65-mn-investment-in-a91-partners-third-fund/
