Incofin India Progress Fund
The SDG Frontier Fund has invested EUR 2 M in equity in the Incofin India Progress Fund, a Financial Inclusion and Agribusiness Fund focused on India. A follow-on investment of EUR 1.5 M was signed in February 2023, bringing the total commitment to EUR 3.5 M.
Amount
€ 3,500,000.00
Type of investment
Equity
Development impacts
- Local economic growth
- Private sector consolidation/innovation
- Financial inclusion
- Food security & rural development
Beneficiary locations
Investment field
Investment Companies & Funds
Activity
FI Fund
Organisation
Incofin India Progress Fund
Website
https://incofin.com/portfolio/Domicile
The IPF is a private equity fund investing in high impact sectors, managed by Incofin India Investment Management and Incofin Investment Management. It is Incofin IM’s first country-focused fund and will target the financial inclusion of the underserved/underserviced end customer and sustainable development of the food and agricultural value chain.
Development impacts
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Local economic growth
Long-term equity finance to SMEs in the agribusiness value chain and to financial service providers such as Non Banking Financial Companies and Fintechs. Both are relevant sectors to reach India’s bottom-of-the-pyramid population. Direct jobs support & job creation and important indirect employment opportunities through the supply chain and finance enabling effect
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Private sector consolidation/innovation
Overlap between financial inclusion and agri-food sector as investees are often looking to provide financial services to their agri clients. Focus on tech-enabled and innovative models for traditional businesses will help to scale business and build more efficient supply chains.
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Financial inclusion
Around half of the portfolio will be invested in innovative financial services, which will help improving financial inclusion in economically disadvantaged groups (rural population, women, etc.). Target sectors/products with strong inclusiveness and enabling potential: MSME finance, income generating loans, alternative lending channels, insurance, and payment and savings services.
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Food security & rural development
Around half of the portfolio will be invested in the post-harvest agri-food value chain, e.g. collection, processing, distribution, retail, market access, etc. to increase agricultural output and promote new economic opportunities for rural populations. Links with other parts of the supply chain are privileged, both upstream and downstream, to improve overall integration of the food supply chain and to reduce food waste.
E&S Impact
IIPF and its investors agreed to update the fund’s Environmental and Social Management System (ESMS), clarifying roles and responsibilities, setting up a stakeholders’ engagement framework and improving the methodology for the E&S risks assessment of Financial Institutions. Furthermore, IIPF team will attend dedicated E&S training and will be supported by external consultants for due diligence and monitoring of projects with a medium or high E&S risk profile.
Situation at the time of investment
The fund has an ESMS in place to ensure E&S risks are assessed and mitigated at all steps of the investment process. It is supported by a set of dedicated E&S tools.
Risk Category: B
Other investments by
SDG Frontier Fund
- Navis Asia Credit Fund LP (Equity) $ 5,000,000.00 (2024)
- Omnivore Agritech & Climate Sustainability Fund III (Equity) $ 3,500,000.00 (2023)
- TIDE Africa II Fund (Equity) $ 2,500,000.00 (2022)
- Uhuru Growth Fund I-A SCP (Equity) $ 2,500,000.00 (2022)
- AfricInvest Financial Inclusion Vehicle (Equity) € 3,200,000.00 (2022)
- Ezdehar Mid-Cap Fund II (Equity) $ 1,700,000.00 (2021)
- Cathay Africinvest Innovation Fund (Equity) € 4,000,000.00 (2021)
- Ascent Rift Valley Fund II (Equity) $ 4,000,000.00 (2020)
- African Rivers Fund III (Equity) $ 1,700,000.00 (2020)
- Excelsior Capital Vietnam Partners (Equity) $ 2,200,000.00 (2020)
- South Asia Growth Fund II (Equity) $ 2,200,000.00 (2020)
Read impact and news about this project
News
SDG Frontier Fund Final Closing
29-04-2022
First-of-its-kind Belgian impact fund mobilises additional private resources to support African and Asian SMEs in their growth.
News
Belgian impact fund backs the entrepreneurial spirit on the Indian countryside
18-11-2021
Belgian impact investor Incofin IM raises 45 million euros in a first investment round for its new impact fund focused on rural development in India.
News
Greener money
31-08-2021
Money is getting greener. The superlative in sustainable investing today is "impact investing". A growing global market that is already worth more than $700 billion.
Article originally appeared in MT Magazine in Dutch.
News
Belgian impact fund focused on the Indian rural economy hits first close of USD 60 M
26-07-2021
A group of international investors announce the successful first closing of the Incofin India Progress Fund (IPF) with USD 60 million of commitments. The fund will make private equity investments in the Indian agri food value chain and in financial inclusion for rural entrepreneurs in India. The committed capital comes from a diverse set of private and institutional investors including Korys, CDC, Proparco, the Belgian Investment Company for Developing Countries (BIO), the SDG Frontier Fund, the King Baudouin Foundation and several Belgian family offices.
News
Repousser les frontières des investissements durables
15-12-2020
An interview with Luuk Zonneveld, An-Heleen De Greef & Eric Van den Bosch on the SDG Frontier Fund, published in L'Eventail on the 10th of December 2020, written by Cédric Boitte.
This article was published in French.
News
You'll never make the world sustainable with only public money
02-07-2020
Financial return is worth twice as much if it also helps the world move forward. The Belgian government and business world collect 50 million euros for sustainable investments in the African and Asian private sector. "Investing is better than giving," says driving force Alexander De Croo, Minister of Development Cooperation. "You will only see a return on your investment if it has really made a difference."
News
SDG Frontier Fund first closing
02-07-2020
First-of-its-kind Belgian impact fund brings together 9 private investors to support sustainable economic growth in African and Asian frontier markets.
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