India-Focused GEF Capital Partners Closes SAGF II At $200 Mn

India-focused clean energy private equity company GEF Capital Partners (GEF) has raised nearly $200 Mn (around INR 1,520 Cr) sealing its South Asia Growth Fund II (SAGF II).

Eight investors including CDC Group of UK, European Investment Bank, Dutch investment firm FMO, Proparco, Swedfund, BIO, International Finance Corp (IFC), an investment arm of the Word Bank and the US Development Finance Corp, among others have participated in the fundraising. 

SAGF II’s investments will focus on climate mitigation, adaptation, circular economy and resource efficiency.

The fund will target a diverse set of companies along the resource efficiency supply chain with a focus on clean energy supply chain, energy efficiency technologies and services, efficient use of water resources and environmental products and services. 

Rajesh Pai, cofounder and managing partner at GEF Capital Partners, said, “GEF looks to invest capital in ways that operate effectively to improve the world around us, while supporting commercially attractive returns to its investors. In doing so, GEF seeks to partner with companies and management teams that are at the inflection point of growth and expansion.”

Founded in 2018, GEF Capital Partners is a global private equity firm that was formed after a collaborative spinout from Global Environment Fund. It primarily focuses on startups that operate in the clean energy segment. 

According to the company, SAGF II has already deployed over two-thirds of its commitments in several Indian companies including Prince Pipes, SeedWorks, Premier Energies, Syrma SGS and 3SC. 

Sridhar Narayan, cofounder and managing partner at GEF Capital Partners said, “The climate sector presents an investment opportunity of more than $1 Tn in South Asia. GEF looks to build on the team’s strong track record of investing and providing attractive exits from the India portfolio of GEF and Global Environment Fund.”

SAGF II was backed by a Europe-based commercial asset management firm headquartered in Europe and developed on a $125 Mn predecessor fund that was led by key GEF team members. 

In July 2021, GEF Capital’s South Asia Fund led supply chain planning and logistics startup 3SC’s Series B funding round. Then, the fresh capital was deployed to scale its domestic business and strengthen its foothold across Europe and Southeast Asia. It also improved its existing software and analytics through both organic and inorganic routes.

Founded by Lalit Das and Sarita Das in 2012, 3SC provides logistics services and supply chain analytics solutions to companies across pharma, FMCG, ecommerce, and industrial industries. The startup offers solutions in planning, distribution, control tower, and 4PL, leveraging AI/ML.