IFC to invest in Accel-backed after-sales services provider Onsitego

By Narinder Kapur

  • 22 May 2020
Credit: 123RF.com

International Finance Corporation (IFC) has proposed to invest $10 million (approximately Rs 75.82 crore at current exchange rates) in Onsite Electro Services Pvt. Ltd, which operates after-sales solutions provider Onsitego.

In a disclosure, IFC said the investment will be made through by subscribing to preferred shares in Mumbai-based Onsitego, which announced its Series B funding round in February.

The proposed investment in the company will help in improved access to protection and after-sales services for the appliances and consumer electronics (ACE) space.

The funding will specifically help Onsitego in expanding its product distribution and service delivery channels, develop and scale its preventative maintenance service, and build its own technological and service infrastructure.

“IFC will be providing non-financial additionality in the form of knowledge, innovation and capacity building, by actively supporting the company's management on strategic decisions as the company continues to grow and expand,” it added.

Onsitego was founded in 2010 by Kunal Mahipal. It claims that over six million people have availed its services and that it covers gadgets and appliances by over 300 brands available in the country. Per IFC’s disclosure, it also recently launched an annual maintenance contract (AMC) services for appliances.

In February, Onsitego raised $19 million (around Rs 135.71 crore) in its Series B funding round, which was led by the Avendus-sponsored Zodius Growth Fund. The US-based global venture capital firm Accel, which is an existing investor in the company, also participated in the round.

IFC’s India bets

The proposed investment in Onsitego is the latest example of the World Bank Group member IFC’s commitment to India, which is its single-largest portfolio market. Apart from its direct investments that involve both equity and debt funding, the institution also actively invests in private equity and venture capital funds.

Today, for example, IFC said it will invest $10 million (around Rs 75 crore) in venture capital firm Endiya Partners' new fund.

Last month, it disclosed plans to invest $10 million (around Rs 76 crore) in a new private equity fund of India Alternatives. The institution said it was also considering another $500,000 commitment to the India Alternatives Private Equity Fund II as part of its Women Entrepreneurship Finance Initiative.

In March, it said it was planning to offer up to $54 million (around Rs 397 crore) in debt to poultry company Suguna Group, to help fund its various projects.

In October last year, it said that it was planning to make an equity investment of up to $20 million (around Rs 141.82 crore) in the overseas unit of agricultural producer Maharashtra Hybrid Seed Company Ltd (Mahyco India). Other companies it has announced plans to invest in include the PE-backed Future Lifestyle Fashions and private-sector lender RBL Bank.