Aavishkaar Emerging India Fund

South Asia Financial services

Aavishkaar is an Indian venture capital firm that specialises in early stage and expansion capital, particularly in firms that solve problems for low-income populations.

The Aavishkaar Bharat Fund (ABF) was set up in 2001 to invest in early stage companies targeting under-served areas in India.

ABF invests in businesses with high social impact in sectors such as agriculture, financial services, healthcare, waste, sanitation, renewable energy and logistics.

Its funds have made 58 investments across India, Indonesia, Sri Lanka and Bangladesh. Those investments have generated 250,000 jobs and livelihoods and reach 70m beneficiaries, of which more than 50 per cent are women.

Our investment

In late 2017, CDC committed $25 million to the fund, which will provide much-needed capital to early stage businesses in parts of India that have been overlooked by the investment community.

Expected impact

Our investment will enable ABF to continue supporting companies that are providing innovative ways of reaching rural areas where the population has limited access to affordable goods and services, servicing the ‘last mile’ in the supply chain.

Its previous investments, for example, include Milk Mantra, a dairy supply chain that manufactures dairy products in Orissa. The business sources from 46,000 smallholder farmers across 400 local collection centres. The milk is then transported to chillers and finally to a processing plant via insulated trucks where it is manufactured into paneer, yoghurt and lassi.

Smallholder farmers sell their milk to Milk Mantra because they are better and more accurately paid, as well as benefiting from advice on best practice from local field officers.

Future investments by Aavishkaar are expected to create similar livelihood opportunities to low-income rural communities.

Environmental and social aspects

The fund manager has a well-established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Financial services
Website:
https://www.aavishkaar.in
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Aavishkaar Venture Management Services
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
November 2017
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$25m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Utkarsh Microfinance

Based in Uttar Pradesh, Utkarsh is a small finance bank which provides financial services to the under-served low-income rural and urban population in north and east India. It started operating back in September 2009, and provides group loans, micro, small and medium enterprise (MSME) loans, housing loans and savings accounts to the unbanked population in its heartland.

View investment details

India South Asia Financial services November 2017 Active
Kottaram Agro Foods January 2018 Active