BANYANTREE INDIA GROWTH CAPITAL FUN
Status: Approved investmentWhy disclosure?
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In case of questions
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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
BanyanTree India Growth Capital Fund is an Indian growth capital private equity fund managed by an Indian Investment Manager, BanyanTree Finance Private Limited (the "IM"). The Fund is a 3rd successor-fund of the IM with a differentiated investment strategy to invest in Indian companies in Tier II and Tier III cities to meet demand of the growing (lower)-middle class in India.
What is our funding objective?
The Fund is expected to close at USD 100mln - USD 125mln, and the capital will be invested in 10-15 small to medium size companies in Tier 2 and Tier 3 cities in India. The Fund will provide long term growth capital (equity and quasi-equity) to companies which have restricted access of capital due to their location either in (i) remote areas or (ii) more poor Indian states. The Fund has a sector-agnostic strategy and will be investing in sectors like food-processing, financial services, pharma, healthcare, education, manufacturing, among others.
Why do we fund this investment?
FMO supports the strategy of the IM to invest in companies in Tier 2 and Tier 3 cities to improve economic inequalities among the states by providing local entrepreneurs long-term capital, improving and professionalizing operations of their companies, growing the businesses and making the companies visible to strategic investors, larger private equity funds or bringing them public for a larger investor universe.
What is the Environmental and Social categorization rationale?
The IM has a professional ESMS and it is expected that the Fund will be making investments in accordance with good ESG practices and will benefit from the ESMS. FMO will continue working with the IM to enhance the ESG knowledge within the IM team to ensure that risks in the portfolio companies are mitigated and value is created.
- Region
- Asia
- Country
- India
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 8/15/2019
- Effective date
- 1/3/2020
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
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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