Faering Capital Fund III

South Asia Manufacturing, Food and agriculture, Financial services

Faering Capital is an Indian private equity and venture capital firm specialising in growth capital investments in the country. The Mumbai-based company was founded in 2010.

Faering Capital Fund III aims to provide growth capital to mid-market companies in India in sectors such as financial services, consumer products and services, healthcare, and logistics to tap into the country’s consumer growth.

Our investment

In 2017, CDC invested $25 million into Faering Capital Fund III, alongside other DFIs and foreign institutional limited partners. Faering Capital is targeting to raise $200 million to provide much-needed growth capital to mid-market companies in India.

Expected impact

Fundraising for India’s private equity market has been difficult, and the sector is at a critical point in its development. Our investment will aim to help address the critical gap in the access to finance for mid-sized companies.

As well as patient capital to support their growth, the fund will provide strategic expertise and guidance to investee companies.

The Faering team has already invested in three companies, including Prataap Snacks, a packaged snacks company with a pan-Indian presence in semi-urban and rural markets; and Utkarsh Small Finance Bank, a micro-finance institution catering to lower income groups in urban and rural areas.

Environmental and social aspects

We will work closely with the fund manager to improve its existing Environmental and Social Management System, including hiring a dedicated E&S manager.

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, Food and agriculture, Manufacturing
Investment type

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

:
Intermediated investment
Fund manager:
Faering Capital Advisors
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
BookMyForex India South Asia Manufacturing February 2016 Active
Prataap Snacks India South Asia Food and agriculture June 2016 Active
Utkarsh Micro Finance Limited

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
WheelsEMI India South Asia Financial services December 2018 Active