IFC May Invest $20Mn In Pragati India's SME Fund

IFC may invest upto $20Mn in Pragati India Fund, which will focus on investing in SMEs from low income statesof India including Jharkhand, UP, MP, Chhattisgarh and Orissa.

Pragati India Fund, with a target size of $75-100Mn will be managed Pragati India Asset Management, a Mauritius based company. The fund - led by Narayanan Shadagopan will investments in the range of $5-$15Mn. UK's development finance institution CDC Group plc has already committed $50Mn to this funds.

To tap the increasing need of growth capital in SME sector, many banks and fund houses are setting up funds for the sector.

Last year, state-owned SIDBI had set a target to raise R1,000Cr venture capital fund dedicated for SME sector. ICICI Bank also had plans to float $100Mn SME fund last year.

IFC has invested in a number of India focused funds. It is also considering an investment of $15Mn In Zephyr Management's third India focused fund - Zephyr Peacock India Fund III.

IFC may also invest $15Mn in India Knowledge-Manufacturing Fund I. The fund managed by Forum Synergies (India) PE Fund Managers Pvt. Ltd will invest in healthcare, information and communication technology, engineering (including related manufacturing and services), and clean technology.

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