In a bold move to support India’s high-growth mid-market enterprises, the International Finance Corporation (IFC) has committed a $65 million investment to A91 Partners’ third fund. This major IFC Investment showcases the institution’s focus on strengthening local capital markets while backing entrepreneurs who fuel economic resilience and innovation.
A91 Partners, founded by former Sequoia Capital India executives, has steadily built a reputation for backing sector-defining ventures across healthcare, consumer goods, financial technology, and digital platforms. This third fund marks a new phase of expansion for the firm, one that is now further empowered through strategic backing from IFC.
Empowering Indian Founders Through Capital Access
For many fast-growing companies in India, the biggest bottleneck isn’t demand—but the lack of patient, scalable capital. A91 Partners aims to fill this gap by targeting businesses that are beyond the seed stage but not yet large enough to attract traditional private equity players.
The $65 million IFC Investment is expected to unlock opportunities for Indian businesses in the underserved mid-market tier. A91’s investment strategy focuses on profitable businesses with clear unit economics and sustainable long-term growth models. These are often businesses in consumer tech, health diagnostics, or digital-first brands ready to scale across the country and beyond.
What Makes This IFC Investment Strategic?
Unlike conventional investors, IFC operates with a dual mandate—generating financial returns while ensuring developmental impact. By investing in A91’s third fund, IFC will play a critical role in shaping how capital is deployed across emerging sectors with both commercial and social value.
The IFC Investment will help A91 reach a larger corpus goal of approximately $450 million for Fund III, enabling the firm to take on larger and more strategic equity positions. This approach supports deeper partnerships with portfolio companies, allowing A91 to offer not only capital but also strategic guidance, governance support, and operational scaling expertise.
ESG and Compliance at the Core
A unique aspect of any IFC collaboration is its emphasis on environmental, social, and governance (ESG) principles. With IFC on board, A91 Partners will incorporate stricter ESG frameworks across its portfolio. These policies will support gender diversity, climate responsibility, and social inclusion—values that are increasingly central to long-term investor confidence.
The IFC Investment also signals to other institutional and sovereign investors that A91’s fund management structure meets global best practices. This opens the door for A91 to attract broader international interest, while aligning its objectives with sustainable development.
India’s Mid-Market Potential Gets a Boost
India’s rapidly formalizing economy has unlocked massive opportunity in its mid-market segment. These are companies that often have strong revenue streams, loyal customer bases, and proven business models—but require smart capital to compete nationally and internationally.
The $65 million IFC Investment will accelerate A91’s ability to support companies that have outgrown early-stage funding but need more flexibility than a traditional private equity deal would offer. This flexible capital can help founders focus on hiring, product innovation, and geographic expansion.
Reinforcing Confidence in India’s Startup Ecosystem
The current global funding slowdown has impacted even strong companies in emerging markets. Against this backdrop, the IFC Investment stands out as a rare vote of confidence in India’s business resilience. IFC’s presence not only stabilizes the investment landscape but also signals to global LPs that India remains a top destination for long-term returns.
For founders and operators, this partnership brings more than just funding—it opens a gateway to IFC’s deep institutional networks, policy guidance, and global expertise in scaling emerging-market businesses.
IFC’s Broader Mission and India Strategy
India is a priority country for IFC, where it has historically invested in financial inclusion, infrastructure, renewable energy, and digital transformation. By investing in A91 Partners, IFC aligns itself with a new generation of capital allocators who are rethinking how private equity can serve both financial and social returns.
This latest IFC Investment reflects an adaptive strategy—one that leverages institutional trust, capital depth, and long-term partnerships to support innovation across the Indian economy.
For an in-depth breakdown of this initiative, read more about the IFC Investment on Businessinfopro.
Read Full Article: https://businessinfopro.com/ifc-plans-65m-investment-in-a91-partners-third-fund/
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