IFC Boosts Mid-Market Growth in India with USD 60 Million Investment

The International Finance Corporation (IFC), a member of the World Bank Group, has committed a USD 60 million investment to the India Business Excellence Fund V G, led by Motilal Oswal Alternates. This initiative is designed to support the expansion of mid-market companies in India across various sectors, including consumer services, financial services, life sciences, and manufacturing.

Through this investment, IFC aims to enhance private sector growth by providing much-needed capital to companies that have often faced challenges in obtaining formal credit, particularly during economic downturns. The fund seeks to identify and support 12-16 mid-market companies with high growth potential, particularly those able to extend their reach beyond India's major cities to lower-income states.

The move by IFC is expected to bolster job creation, promote inclusive growth, and contribute to India's transition toward becoming a higher middle-income country. According to the statement, this is IFC's third collaboration with Motilal Oswal Alternates, following previous investments in the fund's second and fourth iterations, reinforcing confidence among institutional investors in India's growing private equity landscape.

(With inputs from agencies.)