AAVISHKAAR FRONTIER FUND
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO has committed US$ 7.5 million to Aavishkaar Frontier Fund, an impact focussed SME fund managed by Aavishkaar Venture Management Services (Aavishkaar) an Indian based impact investment manager. The Fund's target size is US$ 60 -75 million, with a realized first close of US$ 45 million.
What is our funding objective?
The Fund will provide seed and growth capital to early and early-growth stage SME's, that target underserved geographies in South Asian countries (Indonesia, Bangladesh, Sri Lanka and Pakistan). The Fund will seek companies that focus on the underserved population in their day to day business and not just as an add-on activity. This is in line with the strategy of the existing Aavishkaar PE funds in India. The focus sectors include agriculture, energy, health, education, livelihoods, water & sanitation and technology for development. The deal sizes are expected to be between US$ 0.5-5.0 million.
Why do we fund this investment?
Investing in a fund like AFF, which has a staged investment approach is an attractive investment opportunity for FMO and different to other fund propositions as the initial investment by the Fund into an investee company will be a small amount. If the company performs well the Fund will participate in follow-on rounds of funding. This staged approach (Sow-Tend-Reap) will allow the Fund to monitor and follow the companies before committing to increasing its commitment. Also AFF will invest equity in early stage SMEs with a focus on impact for the rural and underserved population.
- Website customer/investment
- http://www.fmo.nl
- Region
- Asia
- Country
- Asia
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 6/3/2015
- Total FMO financing
- USD 7.50 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B