Japan International Cooperation Agency commits $40 million to Aavishkaar Capital’s Global Supply Chain Support Fund – The Economic Times

Japan International Cooperation Agency (Jica) has dedicated $40 million (about Rs 334 crore) to Aavishkaar Capital’s Global Supply Chain Support Fund, strengthening the Mumbai-based impression investor’s concentrate on enterprises throughout Asia and Africa.

The funding was introduced by Japanese Prime Minister Shigeru Ishiba in the course of the “Financial Partnership in Indian Ocean – Africa Discussion board,” held alongside Ticad 9 (Tokyo Worldwide Convention on African Growth) in Yokohama.

The World Provide Chain Assist Fund (GSC Fund), a credit score automobile backed by numerous buyers, together with German growth financial institution KfW, is Aavishkaar Capital’s eighth fund. It’s aimed toward rising corporates in world provide chains throughout sectors similar to agriculture, meals processing, and manufacturing.

“Not like enterprise debt, which is a short-term, 18-24 months alternative, we do it as performing credit score, investing within the development of the businesses and getting payback from the money flows of the corporate. So, our tenders are between three to 5 years, and we create constructions which can be helpful for the corporate and for the fund,” mentioned Monu Jain, associate, Aavishkaar Capital.

Vineet Rai, founder and chairman at Aavishkaar Group, mentioned the fund, which is aiming to boost a complete corpus of $220 million, provides non-dilutive capital options aimed toward supporting small and medium enterprises (SMEs) with local weather and social impression. The fund has already made eight investments throughout Asia and Africa, pouring in round $30 million.

Rai added that the Japanese company has beforehand backed Aavishkaar funds in India and is now increasing the partnership to Africa and different elements of Asia.

“Inside the Aavishkaar group, there was a relentless partnership with Jica. It has taken us a while to succeed in a major dimension of funding from Japan, and I consider this is a chance to open up extra funding from Japan. Extra so, given Indo-Japanese cooperation and an growing urge for food amongst Japanese buyers to take a look at India,” Rai famous.

Aavishkaar Capital, a part of the broader Aavishkaar Group, has about $550 million in property below administration (AUM) throughout eight funds. It has invested in a number of sectors, together with sustainable agriculture, monetary inclusion, and important companies. Aavishkaar Group manages $1.3 billion in impression property.

Impact investing in India has been drawing consideration from world growth finance establishments, which see alternatives in enterprises that serve the “world south”.

“By investing within the fund and getting into a brand new chapter of collaboration with the Aavishkaar Group, we hope to raise the well-established India-Japan partnership and additional strengthen our dedication to impression funding in Africa and Asia,” mentioned Mikio Hataeda, senior vp, Jica.