Aavishkaar India Micro Venture Capital Fund
Last updated 13 May 2020, by Impactyield.
Emerging countries (256) / Asia (67) / Southern Asia (30) / India (25)
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.
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.
of track record
the year funded
Equal rights to ownership basic services technology and economic resources
Universal access to safe and nutritious food
Universal access to sexual and reproductive care, family planning and education
Free primary and secondary education
Safe and affordable drinking water
Universal access to modern energy
Key performance indicators
Asset manager: Aavishkaar Venture Management Services Private Limited
Product track record: Fund has 22 years of track record
Target IRR: 30%
Committed Capital: 50,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: India
Product status: Closed - still investing
Style/Stage: Early Stage, Seed Stage
Inception year: 2001
Vintage year: 2007
Target region: Asia, Emerging countries, India, Southern Asia
Target close date: n.a.
Product term: 10 years
Assets under management: 1,000,000,000 USD (US Dollar)
Investment size: Min: 100,000; Max: 1,000,000; Avg: 400,000
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 20
Fund investments to date exited or repaid: 3
Management fee: 3.5%
Carried interest: 15%
Hurdle rate: 6%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Pension Funds, Retail Investors
Phone number: 0.00
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The fund investments create sustainable changes by increasing economic activity at the bottom of the pyramid, boosting entrepreneurial spirit and establishing socially motivated VC- funding as a new financing mechanism in India. To date, the fund has made investments across industries, which include Healthcare, Agriculture, Energy, Education, Water, Sanitation and Technology. While some companies help to eliminate rampant inefficiencies that afflict rural populations; some provide products / services which improve the standard of living of people at the BOP; and others empower women and disadvantaged communities by providing livelihood opportunities.
Social Report available on request.