Aavishkaar Bharat Fund is the investor’s sixth fund, and is a SEBI registered Category II Alternative Investment Fund. The firm is aiming to raise Rs 2,000 Crore ($310 million) for this fund, through which it will invest in businesses engaging with the underserved population in sectors — like agriculture, financial services, healthcare, waste and sanitation, renewable energy and logistics and supply chain.
“At this stage in India’s evolution, it is clear that for the entire country to develop, rural areas and underprivileged citizens must become part of the economic miracle, not through charity, but through real opportunities,” said Sunil Kant Munjal, Chairman, Hero Enterprises.
“Currently, most of India’s development has taken place in urban areas and in medium and large enterprises. So it is heartening that a number of small and brave entrepreneurs are getting into projects aimed at the Indian heartland. It is our turn to step in, provide support, and help create prosperity at the bottom of the pyramid,” he added.
Hero Enterprise is a prominent Indian diversified group with its mainstay in the auto sector including bicycles, motorcycles, auto components, and a host of service businesses. It has also recently invested in a number of startups and select e-commerce ventures.
“With this investment we can continue to build and scale enterprises that are working at the grassroots, whilst simultaneously multiplying their impact outcomes,” said Vineet Rai, Founder and CEO of Aavishkaar-Intellecap Group.
Since it began operations in 2002, Aavishkaar, a part of the Aavishkaar-Intellecap Group, has made around 50 investments, across sectors and geographies. It has raised five funds, delivering commercial returns with a total of Rs 1,300 crore under management.
Aavishkaar is currently raising also a $75 million Frontier Fund, which will invest in South and South-East Asia, its first overseas fund.