.₹ 2,000-cr Fund will be the Real Aavishkaar
New Delhi: Aavishkaar Venture Management Services plans to raise a new fund this year with a total target corpus of .₹ 2,000 crore.
This will be the sixth fund of the company, which is among India’s oldest impact investment focused venture capital funds, and increase its total assets under management to .₹ 3,500 crore.
“Before the end of this year we will announce the first close of this fund with around $225 million of international money and .₹ 500 crore raised in India,” said Vineet Rai, CEO of Aavishkaar. Impact funds such as Aavishkaar are increasingly seeing qualityentrepreneursattemptingto affect social impact with sustainable business models.
“Earlier, the entrepreneur only wanted to impact a village, now he wants to impact 6,00,000 villages. What has changed is the ambition at the entrepreneur level and also our abilitytosupportthatambitionwith more capital,” said Rai, who recently joined the advisory board of United Nations Economic and Social Commission for Asia and the Pacific. Some of the companies that Aavishkaar has recently backed include online marketplace Jaypore and ecommerce logistics firm ConnectIndia. One of Aavishkaar’s portfolio companies, Equitas, in which it was an early investor, saw its initial public offering oversubscribed 17.21 times. Aavishkaar-backed EPS, which provides outsourced ATM services to large banks in the country, raised follow-on funding worth $25 million from Apis Growth Fund.
Aavishkaar had raised $45 million to mark the first close of its Aavishkaar Frontier Fund, which has a total target corpus of $75 million. The fund is focused on making investments across Indonesia, Bangladesh, Sri Lanka and Pakistan, with a ticket size of $1-5 million.