India Business Excellence Fund IIA (IBEF IIA), which caters to the capital requirement of Small and Medium Enterprises (SMEs), may get upto $25 million funding from the International Finance Corporation (IFC).
The proposed investment by IFC may boost further equity funding to capital constrained SMEs looking for growth capital.
India Business Excellence Fund IIA plans to set up a $100 million fund to invest in sectors which benefit from demand led by domestic consumption and infrastructure enablers.
The fund would invest in companies that are into high growth businesses and also focused on Tier II and Tier III cities in India.
Although the target fund size is $100 million, the fund has an option to accept additional commitments as may be recommended by the Investment Advisor.
It may be recalled that earlier the company launched the first series of the fund – India Business Excellence Fund I – with a corpus of $82.5 million.
The fund will be a limited liability Mauritius registered company, which will acquire, own and operate the portfolio of investments.
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