India: Aavishkaar Targets US $4 bn in Assets Under Management by 2024
India, December, 03 2017 -
Homegrown impact investing company Aavishkaar Intellecap Group is aiming to have about US $4 billion in assets under management (AUM) by 2024, a top company official said.
"We are targeting an asset under management of about US $4 billion (nearly Rs25,000 crore) by 2024," the group's founder Vineet Rai told.
"We will close this year (March 2018) with US $800 million (about Rs5,200 crore) in assets under management," he added.
Among the early adopters of the venture capital funding to serve the low-income market segment, Aavishkaar runs multiple entities, including Aavishkaar Venture Management Services, Intellegrow, Intellecash and Arohan, which provide venture equity, venture debt, merchant financing and micro financing, respectively.
Rai said the group has been sector agnostic in the impact sector, but about a quarter of its equity funds have been pushed towards financial services segment.
"Other sectors gaining popularity are artisanal services and agriculture have huge growth potential, followed by health and education," he added.
To focus on these sectors, Aavishkaar Venture Management Services recently announced the close of its newest impact investment fund at US $95 million (Rs 620 crore).
Impact investing in the country has been growing steadily with over US $5.2 billion having come into the ecosystem between 2010 and 2016 even as investments worth US $1.1 billion were made in 2016 alone, according to a report by McKinsey.
Investors in the ecosystem have witnessed around 48 exits in the period, with about 24 having been made by the Aavishkaar Intellecap group alone, Rai added.