IFC Plans $65M Boost for A91 Partners' Third Fund to Fuel Growth

In a notable step toward shaping India’s mid-market investment landscape, the International Finance Corporation (IFC) has announced plans to invest $65 million in A91 Partners’ third fund. This decision reinforces IFC’s long-standing focus on sustainable private sector development in emerging economies. The capital infusion isn’t just a financial transaction—it represents a commitment to fostering innovation, supporting growth-stage startups, and empowering India’s rising entrepreneurial class.

This investment is more than a headline. It reflects how IFC Plans to transform India’s investment ecosystem by supporting ventures that often find themselves in a funding void between early-stage backing and late-stage private equity.

Why IFC Is Targeting Growth-Stage Startups

India’s startup ecosystem has matured significantly over the last decade. While seed and early-stage funding continue to flow freely, growth-stage companies—those beyond the startup phase but not yet large enough for IPOs or major PE deals—struggle to raise consistent capital.

This is the gap IFC Plans to fill. By backing A91 Partners, IFC is enabling capital access for high-potential businesses that are scaling operations, expanding product lines, or entering new geographies.

These startups are often:

• Generating revenues

• Profit-focused

• Operating in underserved markets

• Delivering measurable impact

This strategic intervention by IFC ensures these companies get the capital they need to sustain their momentum and evolve into market leaders.

Why A91 Partners Is the Right Vehicle

A91 Partners, founded by seasoned investors formerly with Sequoia Capital India, has positioned itself as a leading growth capital provider in India. Its team focuses on businesses in consumer, healthcare, financial services, and B2B tech sectors.

What makes A91 particularly attractive—and why IFC Plans to invest through it—is the firm's disciplined investment process, robust governance framework, and demonstrated ability to identify scalable Indian businesses.

Past A91 portfolio companies include firms that have gone on to achieve significant success, making the firm a trusted name among both entrepreneurs and global investors.

Priority Sectors That Will Receive Capital

The capital that IFC Plans to channel through A91’s third fund will support sectors critical to India’s socio-economic development:

1. Healthcare

Supporting diagnostic platforms, pharma-tech, wellness services, and rural healthcare distribution.

2. Financial Inclusion

Backing fintech startups that simplify lending, payments, and insurance access for underserved individuals and SMEs.

3. Consumer Goods

Investing in Indian brands reaching Tier 2 and Tier 3 cities with innovative, locally tailored products.

4. Enterprise Tech

Funding B2B SaaS companies that automate and streamline business operations for Indian SMEs.

These are sectors that not only show strong commercial potential but also deliver tangible social benefits—an ideal intersection for what IFC Plans to promote through its development mandate.

IFC’s Broader Strategy in India

India is one of IFC’s most significant investment markets globally. With a growing population, rising digital adoption, and a thriving entrepreneurial ecosystem, India offers fertile ground for high-impact private sector investments.

The $65 million commitment to A91’s fund aligns with IFC’s priorities:

• Sustainability: Funding businesses that are climate-conscious, resource-efficient, and community-focused.

• Job Creation: Supporting companies that generate employment, especially in rural and semi-urban areas.

• Gender Inclusion: Promoting women-led and women-centric enterprises.

• Innovation: Enabling the creation of homegrown technologies that can scale globally.

This is how IFC Plans to build inclusive prosperity across the region.

Addressing the Mid-Market Capital Crunch

The “missing middle” problem is real in India. Many startups grow out of their initial funding and customer base, only to hit a capital roadblock. Traditional VCs move on to earlier deals, while PEs wait for billion-dollar valuations.

IFC Plans to address this structural gap by backing fund managers like A91, who specialize in mid-sized tickets for companies with solid fundamentals and high growth prospects. This support will:

• Help startups avoid premature exits

• Improve the quality of IPO candidates

• Strengthen India’s domestic investment capacity

It’s a long-term move to stabilize the venture lifecycle in India.

Leveraging IFC’s Non-Financial Value

Beyond capital, IFC brings a wealth of resources to the table. Portfolio companies that receive IFC-backed funding often benefit from:

• ESG advisory services

• Global market access through World Bank networks

• Governance best practices

• Policy-level influence

This is part of the holistic growth model that IFC Plans to promote. Startups and their investors aren’t just writing checks—they’re building institutions that can withstand market shocks and contribute to India’s GDP in meaningful ways.

Boosting Investor Confidence and LP Interest

One of the biggest impacts of IFC’s investment in a fund is the validation it provides. Global limited partners (LPs) often look for signals of credibility before investing in emerging market funds. IFC’s involvement gives confidence in:

• The fund manager’s diligence and ethics

• The robustness of portfolio companies

• The investment strategy and sector allocation

Because IFC Plans each investment with rigorous impact metrics, its endorsement often leads to more capital flowing into the fund—resulting in a multiplier effect that benefits the ecosystem.

Accelerating Economic and Social Inclusion

What makes this move significant isn’t just the funding size, but the ripple effects it creates. Through this partnership:

• Tier 2/3 entrepreneurs gain growth capital

• Consumers get access to better products and services

• Health and finance accessibility improves for millions

• Indian brands get global exposure

This kind of inclusive capital deployment is the core of what IFC Plans to achieve globally, and India serves as a model market for this development-first approach.

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