IFC Invests $60M in Motilal Oswal Alternates’ Fund to Boost India’s Mid-Market Growth

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a strategic $60 million equity investment in Motilal Oswal Alternates' (MO Alternates) new private equity fund—India Business Excellence Fund V G. This initiative is designed to stimulate growth and technological adoption among India’s mid-market enterprises, particularly in underpenetrated regions and key industries such as life sciences, consumer services, manufacturing, and financial services.

In addition to the equity contribution, IFC has also committed a $60 million co-investment envelope, enabling it to directly participate in high-potential deals alongside the fund. This move underscores IFC’s confidence in India's mid-sized business segment and its intent to amplify capital mobilization through partnerships.

Fund Structure and Investment Scope

India Business Excellence Fund V G is MO Alternates’ fifth flagship fund, targeting a total corpus of $750 million, with an additional green-shoe option of $150 million. The fund is expected to identify and support 12–16 growth-oriented companies. A strong emphasis will be placed on firms capable of expanding beyond metro markets to Tier-2 and Tier-3 cities and underserved low-income states.

The fund will not only inject capital but also provide strategic support to its portfolio companies. Notably, IFC will assist MO Alternates in promoting gender inclusion by organizing capacity-building workshops and developing workforce participation benchmarks for women across investee firms.

Strategic Impact and Leadership Vision

Vishal Tulsyan, Managing Director and CEO of Motilal Oswal Alternates, highlighted the synergy between IFC’s developmental mandate and MO Alternates’ growth philosophy. “We are delighted to deepen our partnership with IFC, which shares our goal to provide growth capital to companies across India, including distant Tier-2 and Tier-3 cities. This collaboration sets a precedent that can inspire institutional investors and catalyze broader fund activity in emerging regions.”

This investment marks the third engagement between IFC and MO Alternates. Past collaborations include a $25 million commitment in the second fund and $35 million in the fourth, along with a $10.4 million co-investment in VVDN Technologies, a domestic electronics manufacturing firm. To date, MO Alternates has invested approximately $1.1 billion across 50 companies.

IFC’s Broader Private Equity Strategy

Speaking on the broader context, Mohamed Gouled, IFC’s Vice President of Industries, emphasized the importance of mid-market financing. “IFC’s investment aims to leverage private capital and solutions to boost job creation, promote inclusive and sustainable growth, and support India’s transition to a higher middle-income country. Providing capital to this segment is essential to maintain India’s momentum in job creation and equitable growth.”

Echoing this sentiment, Imad N. Fakhoury, IFC’s Regional Director for South Asia, stated: “Our long-standing partnership with Motilal Oswal Alternates reflects a shared commitment to strengthening India’s mid-market ecosystem. By unlocking capital for entrepreneurs—particularly in low-income states—we aim to accelerate private sector investment in national priority areas.”

IFC’s private equity strategy prioritizes partnerships that deliver developmental impact at scale. Through anchor investments, co-investment envelopes, and multi-cycle fund commitments, IFC aims to crowd-in global institutional capital while supporting companies that catalyze job creation, technology adoption, and economic resilience in emerging markets.

Role of Mid-Market Enterprises in India’s Economic Fabric

Mid-market firms are often regarded as the backbone of India’s industrial engine, yet they struggle to access formal credit, particularly during economic downturns. Private equity plays a transformative role by bridging this financing gap—empowering these firms with both capital and operational expertise. Research shows that PE-funded companies generally outpace their peers in employment growth, tax contributions, and innovation.

With initiatives like this, IFC continues to champion private sector development in emerging economies by harnessing the power of partnerships, long-term investment commitments, and a focus on impact-driven growth.