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Exclusive: IFC seeks to double VC portfolio in three years

17 June, 2016

International Finance Corp (IFC) aims to double the size of its global venture capital portfolio within three years as it steps up the pace of investments, a top executive at the World Bank’s private sector investment arm told VCCircle.

“The total size of our venture investment portfolio is around $500 million as of date. Our investment pace has increased, so within the next three years we expect to have a $1 billion portfolio,” said Nikunj Jinsi, IFC’s global head of venture capital.

IFC’s VC arm invested mostly in the clean-tech sector between 2009 and 2013, and thereafter expanded its mandate to include consumer Internet, healthcare and edu-tech segments. Consumer Internet and clean-tech comprise a significant portion of its portfolio, which has only three healthcare and edu-tech companies each.

Jinsi also said that India and China, which make up about 30% each of its portfolio, will remain the focus areas. 

IFC’s VC arm has a ticket size of $5-20 million and it typically comes in during a Series B or Series C round. It makes 12 to 14 direct venture investments and some follow-on deals a year, spending about $150 million annually, Jinsi said.

The venture investment arm generally puts money along with co-investors. In India, it has co-invested with Nexus Venture Partners, Helion Venture and Kalaari Capital.

The VC arm’s portfolio in India include eyewear e-tailer Lenskart Solutions Pvt Ltd and Health Vista India Pvt Ltd, which runs home healthcare company Portea Medical. 

It also invests in VC funds to make early-stage investments. It made five VC fund investments in the year ending on 30 June and intends to do five globally next year, Jinsi said. 

IFC’s venture arm also provides a platform for technology startups to partner with established companies. It has initiated a TechEmerge programme that offers matchmaking to healthcare-technology startups globally with established Indian healthcare providers including Apollo Hospitals. The mandate is likely to be expanded to other sectors as well including fin-tech.

IFC is also looking to invest selectively into accelerators to develop a robust ecosystem for entrepreneurs, Jinsi said, without giving details.

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Exclusive: IFC seeks to double VC portfolio in three years

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