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 a significant equity investment in A91 Partners’ third fund, aiming to support the venture capital firm’s growth and expansion plans. According to a recent disclosure, IFC is considering an investment of up to ₹303.9 crore (approximately $42 million) in the new fund.
The planned investment is part of IFC’s strategy to promote entrepreneurship and innovation in India, particularly in the technology sector. A91 Partners, a leading venture capital firm in India, has a strong track record of investing in early-stage startups and scaling them up to achieve significant growth.
A91 Partners’ third fund, which is expected to be launched soon, aims to invest in startups across various sectors, including fintech, healthtech, edtech, and consumer internet. The fund is expected to focus on supporting startups that have the potential to drive positive social and environmental change, in addition to generating strong financial returns.
The IFC’s planned investment in A91 Partners’ third fund is significant, as it demonstrates the organization’s commitment to supporting the growth of India’s startup ecosystem. The investment is also expected to have a positive impact on the broader economy, as it will provide a boost to entrepreneurship and job creation.
In addition to the equity investment, IFC is also considering an additional co-investment of up to ₹260.5 crore (approximately $36 million) into the new fund. This co-investment will allow IFC to participate in the fund’s investments alongside A91 Partners, providing an opportunity to support startups that align with IFC’s development goals.
A91 Partners’ previous funds have had a strong track record of returns, with the firm’s second fund achieving a 2.5x return on investment. The planned investment in the third fund is expected to build on this success, providing a strong foundation for future growth and returns.
The IFC’s investment in A91 Partners’ third fund is also a testament to the growing importance of venture capital in India’s startup ecosystem. Venture capital firms like A91 Partners play a critical role in supporting early-stage startups, providing them with the necessary funding and guidance to scale up and achieve success.
In recent years, India’s startup ecosystem has experienced significant growth, with the country now home to over 50,000 startups. The ecosystem has also seen a surge in venture capital investments, with firms like A91 Partners playing a key role in supporting the growth of startups.
The IFC’s planned investment in A91 Partners’ third fund is expected to have a positive impact on the startup ecosystem, providing a boost to entrepreneurship and innovation in India. The investment will also provide an opportunity for IFC to support startups that are working on solutions to some of India’s most pressing development challenges, such as access to healthcare, education, and financial services.
In conclusion, the IFC’s planned investment in A91 Partners’ third fund is a significant development in India’s startup ecosystem. The investment demonstrates IFC’s commitment to supporting entrepreneurship and innovation in India, and its confidence in A91 Partners’ ability to identify and support startups that have the potential to drive positive social and environmental change.
Source: https://inc42.com/buzz/ifc-mulls-65-mn-investment-in-a91-partners-third-fund/
