International Finance Corporation (IFC), the World Bank’s private-sector investment arm, has proposed an investment in the second fund of A91 Partners, a venture capital firm floated by former Sequoia Capital executives.
”IFC proposes an equity investment of up to $25 million (Rs 184 crore), not exceeding 20% of total commitments with an equivalent amount in co-investment envelope, in A91 Emerging Fund II LLP,” the World Bank unit said in a disclosure.
The target corpus of the fund is $500-550 million. The vehicle aims to invest in 15-17 companies in consumer, financial services, healthcare and technology sectors, the disclosure added.
A91 Partners was floated in 2018 by former Sequoia Capital executives VT Bharadwaj, Gautam Mago and Abhay Pandey. The trio left Sequoia Capital between June 2017 and August 2018.
In 2019, IFC had also decided to put $25 million (around Rs 177 crore) in A91 Emerging Fund I LLP.
IFC has previously invested as a limited partner in Indian venture capital funds such as Chiratae Ventures (formerly IDG Ventures India), Stellaris Venture Partners and Pi Ventures.
Last month, the global impact investor announced that it had committed over $3.8 billion including mobilisation and short-term finance in South Asia as of June 2021.
In India, IFC’s largest client country globally, total commitments at the end of June stood at $1.7 billion representing an increase of over 51 per cent from last year.
“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,” the IFC disclosure stated.
The fund will primarily invest in established companies in India or having nexus with India in potential sectors such as consumer goods and services (food, home and personal care, consumer service, retail, etc.), financial services (specialist lending, saving, insurance, etc.), healthcare (consumption-driven pharma and healthcare services) and technology (software products and services).
Last month, VCCircle reported A91 Partners is in advanced discussions to invest in homegrown cycle brand Outdoors91 (previously known as Frog).
The venture capital fund also reportedly invested in Soothe Healthcare which offers sanitary napkins under the Paree brand name.
In February, the investor backed healthy snacks maker Happilo. A91 Partners has also backed spices maker Pushp, Aye Finance, consumer-tech firm Atomberg Technologies, beverage brand Paper Boat, and make-up brand Sugar Cosmetics.