Aavishkaar Capital Announces First Close Of Eighth Impact Fund

The fund will be looking to increase the size of this fund over the next few months.

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Aavishkaar Capital, on Wednesday announced to have closed in excess for INR1,000 crores for its eighth impact fund overall and sixth fund dedicated to investing for impact in India. The fund will be looking to increase the size of this fund over the next few months.

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"We are excited about partnering with the opportunities that tech led businesses are able to disrupt in traditional sectors like agriculture, financial services and essential services. We are confident of delivering attractive returns whilst bringing about a significant positive change in the lives of the people," said Sushma Kaushik, Partner, Aavishkaar Capital.

"Aavishkaar's proven track record in delivering impact, positions it as an important co-investing partner with proven ability to facilitate greater financial support to India's innovative entrepreneurs in businesses across sustainable agriculture, financial inclusion and essential services. We are proud that our latest investment, which forms British International Investment's fourth commitment to this fund manager, will help accelerate scalable impact for low-income and underserved communities, creating more jobs and expanding economic opportunities throughout India," said Srini Nagarajan, Managing Director and Head of Asia, British International Investment.

The AIF VI will be led by Aavishkaar Capital Partners Vineet Rai, Sushma Kaushik, Anurag Agrawal and Tarun Mehta and the team has a healthy deal pipeline with the first transaction expected to be consummated in Q1, 2023. The new Aavishkaar India Fund VI is the eighth fund from Aavishkaar Capital and will be its largest fund in India, targeting double the corpus of the predecessor fund. Funds advised by Aavishkaar Capital have till date made 62 investments in India and 38 full and partial exits.

Anchored by British International Investment, Swiss Investment Fund for Emerging Markets, Fund of Funds for Startups managed by Small Industries Development Bank of India and Self Reliant India Fund, the Aavishkaar India Fund VI will invest in businesses, largely MSME's with technology as a key enabler in the core sectors of Sustainable Agri-tech, Financial Inclusion and Essential services with a focus on Climate-tech, with the intent to build commercially attractive and impactful businesses.