In a strong endorsement of India’s maturing startup ecosystem, the International Finance Corporation (IFC), part of the World Bank Group, has proposed a significant investment into the third fund launched by Indian investment firm A91 Partners. This proposed commitment—up to $65 million—includes $35 million in direct equity and an additional $30 million for co-investments in selected portfolio companies.
The move marks IFC’s third collaboration with A91 and signals a deepening of its strategic focus on Indian growth-stage companies. For A91 Partners, this latest partnership underscores its credibility and momentum in India’s competitive private equity landscape.
A Strategic Partnership with Long-Term Vision
IFC’s interest in the new fund isn’t just financial. It represents a broader commitment to accelerating private sector development in emerging economies. By supporting A91’s fund, IFC aligns itself with a model that prioritizes both financial returns and social impact. The fund’s focus includes sectors vital to India’s economy—consumer products, healthcare, financial services, and industrial technology.
The proposed investment aims to empower 12–15 companies, with individual ticket sizes ranging from $10 million to $50 million. This makes the third fund not only A91’s largest—targeting $675 million—but also one of the most strategically positioned for India’s mid-market sector, a segment that is often underserved yet high in potential.
Scaling with Purpose: ESG and Gender Diversity
A91’s third fund distinguishes itself by embedding Environmental, Social, and Governance (ESG) considerations at its core—an increasingly vital criterion for institutional investors like IFC. A notable feature of the fund is its commitment to gender inclusion. Portfolio companies are expected to have at least one woman board member, and gender committees will be instituted to foster inclusive practices.
Such initiatives reflect a progressive investment philosophy, one that resonates with the values of modern LPs who are demanding accountability and social responsibility along with growth.
The Rise of A91 Partners
Founded in 2018 by former Sequoia Capital executives Abhay Pandey, VT Bharadwaj, and Gautam Mago, A91 Partners quickly emerged as a serious player in India’s venture and growth equity scene. Its investment thesis focuses on businesses in the Series B to pre-IPO stages—an area often overlooked by traditional venture capital and large PE funds.
A91’s portfolio includes successful brands like Sugar Cosmetics, Digit Insurance, Atomberg Technologies, and Blue Tokai. These companies exemplify the kind of scalable, capital-efficient, and founder-led businesses that A91 seeks to back—ventures that combine innovation with operational discipline and market traction.
Why IFC’s Involvement Is a Game Changer
IFC brings far more than capital. Its participation provides A91 Partners with global recognition, strong governance frameworks, and enhanced credibility with other institutional investors. Historically, IFC’s backing has helped unlock access to a wider pool of international LPs, reducing fundraising friction and improving fund resilience.
Moreover, IFC collaborates closely with fund managers on ESG integration and sustainability planning, making portfolio companies more attractive in the long run for both IPO and acquisition routes.
India’s Mid-Market: A New Growth Engine
India’s mid-market sector—comprising companies that have moved past the startup phase but are not yet large-scale enterprises—is becoming a growth powerhouse. These businesses are often ready to scale, with proven products and revenue models but need significant capital to expand into new geographies or improve infrastructure.
As India’s economy continues to digitize and diversify, especially across Tier 2 and Tier 3 cities, these mid-market firms are increasingly the drivers of employment, consumption, and innovation. A91 Partners, through its focused growth equity approach, is uniquely positioned to catalyze this segment.
Strategic Implications
IFC’s proposed $65 million commitment to A91 Partners’ third fund signals a strong endorsement of India’s mid-market growth story. By supporting a fund focused on high-potential sectors like healthcare, consumer, and financial services, IFC is reinforcing its commitment to fostering innovation, employment, and sustainable economic development in emerging markets. This move not only strengthens A91’s ability to back transformative companies but also underscores the critical role of global capital in driving inclusive growth within India’s private sector.