The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a $25 million commitment, with an equivalent amount in co-investment envelope, in the second fund of Indian venture capital firm A91 Partners.
In its disclosure, IFC said A91 is targeting $500-550 million in commitments for A91 Emerging Fund II to invest in 15-17 companies in consumer, financial services, healthcare, and technology sectors.
A91 Partners, floated by former Sequoia Capital executives, has reportedly reached the final close of its second fund by garnering $525 million in capital commitments.
A91 Partners has already deployed $250 million of the second fund across 11 investments so far. While A91 will continue to cut cheques averaging $30 million, it may also look to support more technology firms through its latest fund, The Economic Times reported.
A91 was set up by VT Bharadwaj, Abhay Pandey, and Gautam Mago, all of whom left Sequoia in 2018 to launch the fund. The firm is focused on making mid-stage investments, in Series B and Series C deals of $10-30 million.
The firm’s second fund is nearly 50% larger compared to its maiden one that raised $351 million in July 2019.
Last June, A91 Partners invested in the $6 million funding round of cloud telephony platform Exotel. In March, the firm invested $41 million in location-based social network public app.
IFC said the fund increases access to equity and value creation for small- to mid-cap companies in India.
A91 Fund II is continuing the value creation strategy of Fund I by supporting first-generation entrepreneurs, providing both capital and active management support, including mentorship and building systems to institutionalise company operations.
“Market creation is delivered through strengthening the integration of the PE market in India. Beyond the project, IFC anticipates that the fund will continue to support an increase in the share of institutional capital in the investor base of the Indian PE market,” IFC said.