Last updated 13 May 2020, by Impactyield.
Emerging countries (256) / Asia (67) / Southern Asia (30) / India (25)
Aspada provides early stage financing in the form of equity and structured debt to small enterprises in India that provide commercial returns in sectors that provide essential services and increase market access to underserved communities. Through such investments, it is expected that the Company will catalyze future investments by demonstrating that investing in small businesses not only achieves important social aims but also is economically viable.
Aspada builds on the experience and the track record of the SONG Fund, a $17 million venture fund setup in 2009 and backed by the Soros Economic Development Fund (SEDF), Omidyar Network, and Google. Over the last three years, SONG has focused on investing in early stage firms in previously under-invested, high-impact sectors such as low-cost healthcare, education, and agriculture. The goal has been to create significant socio-economic impact with invested capital as well as to “re-price” the risk of investing in early stage companies in these sectors.
The fund has begun to disperse capital and announced it's first transaction in April of 2013, having invested in an end-to-end fresh vegetable supply chain company in South India that aggregates produce at the farm gate, clean, processes, and sell to many major retail markets. The company works directly with small-hold farmers to improve livelihoods and open market linkages.
Aspada Investments will expand the boundaries of SME financing by providing both equity and structured debt capital to entrepreneurs operating in sectors critical to India’s sustained growth. Early stage equity financing plays an important role in the new fund as the market remains underserved in the sub-five million deal size segment in non-technology sectors; however, the market for structured, self-liquidating products in India is significantly larger given the deficiencies within the local banking system. By creating a vehicle that can fund with both equity and structured debt, Aspada will help to play an important role in helping to further the access of small firms to the capital markets.
Aspada will provide early stage equity, quasi-equity, and structured debt capital to small businesses across a variety of targeted sectors: agriculture, healthcare, education, logistics, financial services and basic utilities. Aspada will invest in highly scalable models that cater to underserved mass-markets and that help to lower the price of goods and services, create large-scale employment and/or prevent community deterioration. In order to serve a diverse set of business models and scalability profiles, Aspada will employ a variety of financing instruments depending on the characteristics of the business model.
of track record
the year funded
Headquarters location: India
Other funds managed by this asset manager: SONG Fund
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
Promote policies to support job creation and growing enterprises
Increase access to financial services and markets
Key performance indicators
Asset manager: Aspada Advisors
Product track record: Fund has 11 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Open - committed capital
Inception year: 2012
Vintage year: n.a.
Target region: Asia, Emerging countries, India, Southern Asia
Target close date: n.a.
Product term: Holding company structure but acts like a fund with a capital call and a finite period
Assets under management: 40,000,000 USD (US Dollar)
Investment size: Min: 500,000; Max: 3,000,000; Avg: 0
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 1
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: Soros Economic Development Fund (SEDF)
Limited Partner / Investor Type: Family Office, Other Institutional Investors
Phone number: +91 965 29 91 212
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Aspada invests in enterprises that provide essential services and show great potential for improving livelihoods of customers and the communities in which they operate. The company focuses on basic ‘nuts & bolts’ opportunities that those in more developed markets take for granted. It is Aspada's belief that many of the essential services for low income populations in India are yet to be built, and that it is important to provide institutional capital to this under-served segment in order to support inclusive growth in India.