Aavishkaar India Micro Venture Capital Fund

Aavishkaar India Micro Venture Capital Fund (“AIMVCF”) is a fund created to promote inclusive development in rural and semi-urban regions in India. The fund’s mission is based on the premise that promising micro, small to medium -sized enterprises (MSMEs) will help drive positive changes in the underserved regions of the country. The fund provides risk capital to businesses that have the potential to make a difference to the base of the pyramid and scale up profitably. The key investment criteria for the fund are - scalability and the potential to make strong positive social impact on rural or semi-urban India. The fund management team further provides active operational and strategic support in growing the businesses.

Financial description

Aavishkaar helps the establishment of entrepreneurial ventures by providing equity financing in the range USD 50,000 and USD 500,000. Aavishkaar generally adopts innovative modes of financing – that facilitate reducing the risk of dilution in promoters’ equity, while protecting Aavishkaar’s interests in the ventures. The various instruments made use of normally are: Common equity, CCPS (Compulsorily Convertible Preference Shares), Mezzanine funding, bridge loans, working capital loans etc. To date, the fund has made two exits, while four investments have received Series B and Series C rounds from mainstream venture funds.