India’s Mid-Market Gets a Boost as IFC Backs A91 Partners with $65 Million
Mumbai, India – The International Finance Corporation (IFC), a member of the World Bank Group, is set to make a strategic investment of up to $65 million in the third venture capital fund of A91 Partners. This commitment comprises $35 million in equity and an additional $30 million for potential co-investments in the fund’s portfolio companies. The move is poised to significantly bolster India's mid-market ecosystem, particularly in sectors such as healthcare, consumer products, technology, and financial services.
This proposed investment marks IFC’s continued confidence in India’s private sector and reflects its broader agenda to support sustainable development through private capital mobilization. With a history of impactful collaborations and a proven mandate for inclusivity and innovation, IFC’s entry into A91’s third fund highlights the growing interest in India’s evolving entrepreneurial and mid-cap landscape.
A91 Partners: A Rising Power in India’s Mid-Market VC Scene
Founded in 2018 by former Sequoia Capital executives V T Bharadwaj, Abhay Pandey, and Gautam Mago, A91 Partners was conceived with a vision to bridge the capital gap between early-stage startups and large, institutionalized companies. The firm targets mid-growth companies across core sectors—offering not only capital but also strategic insight, operational expertise, and governance support.
Their investment approach is characterized by a focus on building long-term value. A91’s typical ticket size ranges from $10 million to $50 million, tailored to meet the scaling needs of companies that have crossed the initial growth hurdle but are not yet in the late-stage investment bracket. This segment often remains underfunded, making A91’s focus both timely and relevant.
The third fund—its largest to date—is targeting a total corpus of $675 million. It is designed to invest in approximately 15 companies, aiming to capture scalable opportunities and deliver robust returns, while also fostering sustainable and inclusive business models.
IFC’s Role and the Strategic Fit
The IFC has long maintained its stance on promoting private-sector-led growth in emerging markets. By supporting high-potential venture capital and private equity funds, it aims to unlock developmental impact alongside financial returns. The proposed $35 million equity infusion in A91’s third fund, along with the $30 million earmarked for co-investments, illustrates this dual objective.
The co-investment capital allows IFC to invest directly in some of the most promising companies that A91 identifies—deepening engagement and oversight while also de-risking the overall portfolio. Moreover, IFC’s participation can serve as a catalyst for other institutional investors, enhancing the credibility and visibility of the fund.
A91’s investment thesis aligns well with IFC’s strategic focus on job creation, inclusion, innovation, and climate sustainability. Several sectors targeted by A91—such as healthcare and financial inclusion—are core to IFC’s global priorities.
A Commitment to Gender Inclusivity
A standout aspect of A91 Partners' investment mandate is its gender-forward strategy. The firm has committed to integrating gender-inclusive practices within its portfolio companies—an area where IFC has also demonstrated long-standing leadership.
Initiatives under this commitment include forming gender committees at portfolio companies, sharing best practices for workplace inclusion, and mandating that each investee company have at least one woman board member. These actions are more than just compliance—they serve to foster diverse leadership, increase innovation, and improve decision-making outcomes.
IFC’s involvement not only validates these efforts but also reinforces global best practices in diversity and inclusion. Gender-inclusive companies have repeatedly shown better financial performance, improved employee engagement, and enhanced brand equity.
How This Investment Reflects Industry Trends
The venture capital landscape in India is witnessing a structural transformation. From being predominantly early-stage oriented a decade ago, the ecosystem is maturing rapidly, with increasing demand for mid-to-late-stage funding. Companies that previously struggled to attract follow-on capital are now scaling quickly—thanks to improved digital penetration, consumer market evolution, and regulatory clarity.
A91’s focus on mid-market growth companies is a direct response to this market need. Their previous successful investments include companies like Digit Insurance, Paper Boat, HealthKart, Exotel, and Blue Tokai Coffee Roasters—all of which have demonstrated scalable and sustainable business models.
Other global and regional funds are also increasing their India exposure. For example, Accel recently launched a $650 million fund focused on India and Southeast Asia, while Bessemer Venture Partners allocated $350 million to its second India-dedicated fund. This uptick in fund activity signals growing international confidence in India’s economic fundamentals, especially in the mid-market segment.
The Developmental Impact of IFC and A91’s Collaboration
Beyond capital infusion, the collaboration between IFC and A91 Partners stands to make a broader socio-economic impact. Mid-sized enterprises are often the engines of employment in emerging markets. They generate meaningful jobs, promote local entrepreneurship, and are more likely to be regionally distributed, thereby contributing to inclusive growth.
Moreover, by emphasizing ESG (Environmental, Social, and Governance) frameworks and good governance practices, IFC adds value beyond financial investment. Its presence ensures better transparency, risk management, and accountability in portfolio companies. In the long run, this creates stronger and more resilient businesses—exactly what India's evolving economy needs.
Market Outlook and Future Prospects
With India projected to be the fastest-growing major economy in the coming years, the demand for structured private capital in sectors such as consumer healthcare, digital infrastructure, agritech, and financial inclusion is set to rise exponentially. Venture capital funds that are agile, sector-savvy, and governance-oriented—like A91 Partners—are ideally placed to address these market needs.
Additionally, regulatory initiatives by the Indian government, such as ease of doing business reforms, startup-friendly tax regimes, and enhanced digital infrastructure, have laid a fertile groundwork for capital inflows. These reforms, coupled with India’s growing domestic consumption and digital user base, are expected to drive sustained venture capital activity in the country.
IFC’s investment in A91’s third fund could thus be seen as a harbinger of a new wave of high-impact, mid-stage funding that supports not only financial success but also long-term value creation for the economy and society.
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