IFC to join as LP in Prime Venture’s fourth VC fund

 IFC to join as LP in Prime Venture’s fourth VC fund

International Finance Corporation plans to come as a limited partner in the fourth fund of Prime Venture Partners, as it continues to support private equity and venture capital firms in emerging markets.

The World Bank’s private-sector investment arm may invest $15 million in the fund and may set aside an equal amount to make co-investments alongside the fund in portfolio companies, it said in a disclosure.

IFC didn’t specify the overall target size of the fund, but said its own investment won’t exceed 20% of the fund’s total capital commitments. This indicates the fund’s size could be upwards of $75 million.

The fund will mainly make seed to Series A stage investments in Indian technology-enabled companies. It will invest in companies across healthcare, education, financial services, logistics, consumer internet and enterprise technology sectors.

The new vehicle comes three years after the early-stage VC firm closed its third fund around $60 million (Rs 400 crore at the time). It had mobilized $8 million for its first fund and $46 million for its second vehicle.

The Bengaluru-based VC firm, which was set up a decade ago, has invested in about 25 startups. These include data platform Tracxn, health-tech venture mFine, fintech startups Ezetap, MoneyTap, Niyo and KredX, and security management app MyGate.

For IFC, the bet on Prime Venture’s fund adds to its LP portfolio in emerging economies. In India itself, IFC is planning to invest in the third mid-market PE fund of Faering Capital and in a stressed assets fund of JC Flowers.

IFC is also active investor in African nations. For instance, it has come as an LP in African venture capital firm Savannah’s second technology seed fund and Cape Town-based venture capital firm Knife Capital’s third fund.

Sumit Upadhyaya

error: Content is protected !!
The Capital Quest