Belgium-based impact investor Incofin Investment Management is planning a $80-million India-focused fund as it looks to expand its investments into food and agricultural sectors, said a report in The Economic Times.
This would be Incofin’s first country-specific fund. It has been investing from its global funds which had an allocation of 15 to 20 per cent for , India investments, Incofin’s partner and co-head for Asia investments Aditya Bhandari told the newspaper.
The proposed India fund is seeking a 50-70 per cent contribution from international investors, and is likely to see the first close by Q1 2019. Globally, Incofin’s portfolio includes investments in over 50 MFIs across 28 countries.
Last year, Gaya-based rural financial services provider Save Solutions Pvt. Ltd (SAVE) raised $6 million in a series A round of funding from the impact investor. Incofin, which has over $1 billion of assets under management, invested in SAVE through its latest fund, AGRIF, which focuses on agricultural and financial services businesses.
Incofin’s other investments in India include agri-to-finance integrated group Sohan Lal Commodity Management, and microfinance company Fusion Microfinance.
The firm recently announced a full exit from Annapurna Finance, India’s eight largest MFI by outstanding loans as on December 2017, with its Rural Impulse Fund II (RIF II). Together with SIDBI Venture Capital, Incofin has decided to fully sell a total 12.5 per cent holding for approximately Rs 90 crore. The investment in Annapurna was routed by Incofin through Rural Impulse Fund in 2012, which is nearing maturity.
Incofin has $50 million of outstanding exposure in Indian companies which it looks to treble by 2020. Globally, it has invested in 316 companies in 45 countries.
Last year, global impact investor Acumen said it was planning to launch an India-dedicated fund, as the investor looked to double down on its most significant geography.