IFC Mulls $65 Mn Investment In A91 Partners’ Third Fund

SUMMARY

IFC, the private lending arm of the World Bank, is planning an equity investment of up to $35 Mn (about INR 303.9 Cr) into the venture capital firm A91 Partners’ third fund

It is also considering an additional co-investment of up to $30 Mn (about INR 260.5 Cr) into the new fund

Notably, A91 Partners is looking to raise $675 Mn for the fund, which will back small and mid-sized companies in sectors including consumer, financial services, healthcare, manufacturing and technology

The International Finance Corporation (IFC), the private lending arm of the World Bank, is planning an equity investment of up to $35 Mn (about INR 303.9 Cr) into the venture capital firm A91 Partners’ third fund.

IFC is also considering an additional co-investment of up to $30 Mn (about INR 260.5 Cr) into the new fund, according to a disclosure on the firm’s website.

“…IFC proposes an equity investment of up to US$35 Mn in the fund (capped at 19.99% of the total commitments in the Fund and Domestic Fund). Additionally, a delegated authority co-investment envelope of an amount of up to US$30 Mn in potential co-investments in the fund’s portfolio companies is being proposed alongside the fund commitment,” IFC said in a statement.

The disclosure further said that A91 Partners is looking to raise $675 Mn for the fund, which will back small and mid-sized companies in sectors including consumer, financial services, healthcare, manufacturing and technology.

It said that the fund expects to invest between $10 Mn and $50 Mn in 15 companies.

Moreover, IFC said it will support the ‘Fund Manager’ in “setting up gender committees at the investee level, facilitate peer learning sessions on gender-inclusive best practices, and monitor the fund’s commitment to having at least one woman board member at each investee level.”

Founded in 2018, A91 Partners is an investment firm that focuses on India’s consumer, technology, financial services, and healthcare sectors. It was established by former Sequoia Capital executives V T Bharadwaj, Abhay Pandey and Gautam Mago, who came together to launch the venture capital firm specialising in mid-stage startups.

In 2019, they closed their first fund at $351 Mn, followed by their second fund of $550 Mn in 2021.

The firm has invested in brands across various sectors, including a $30 Mn Series B funding round in Blue Tokai Coffee. Its portfolio also includes Digit Insurance, Inshorts, Sugar, Exotel, HealthKart, Paper Boat and Plum.

Most recently, the firm invested about INR 50 Cr in a D2C fashion brand Rare Rabbit.

This comes after a year of report resurfacing that the firm was eyeing to raise about $750 Mn for its third fund and the average ticket size increasing from $20-30 Mn to $35-40 Mn.