The Mumbai-based social entrepreneurship-focused venture capital fund, Aavishkar is planning to raise $400 Mn in 2015. It will be done in two tranches, a $100 Mn and a $300 Mn one within the next 12 months.
The company will invest $100 Mn in Africa-focused fund and $300 Mn in India-focused fund. This would be the biggest amount raised by any fund focusing on the social sector or impact investing in the country.
Vineet Rai, CEO and managing director, Aavishkar said, “We hope to close the first fund by the end of March as we are halfway there. We are also raising a separate $300 Mn fund which would be closed by the end of 2015.”
Earlier, Aavishkar had raised $112 Mn and invested in the early stage social sector enterprises. In last 10 years, it had made 48 investments across eight sectors with 90 per cent of the companies having rural and semi-urban markets as their focus.
In India, there are around 9 funds which focus on social sector and aims to create an impact on the society along with returns on investments. This would be the first time an Indian venture capital fund is investing in Africa.