IFC Backs A91’s $600M Fund III with $65M Strategic Investment

The International Finance Corporation (IFC), part of the World Bank Group, has unveiled its plan to invest $65 million in the third fund being raised by A91 Partners, a prominent growth equity firm in India. This commitment showcases IFC’s long-term vision to support innovative and scalable businesses that are crucial to India’s continued economic growth. With this announcement, IFC is reaffirming its role as a critical player in funding emerging market economies and supporting local private equity firms with proven track records.

The fund, expected to raise up to $600 million, will target investments in early-growth and mid-market Indian companies. Sectors of interest include healthcare, consumer brands, financial services, and technology—industries that are not only essential to India's domestic needs but also poised for international expansion. IFC’s participation in this round is a reflection of its strategic interest in strengthening India’s entrepreneurial ecosystem.

What sets IFC apart from other investors is its unique focus on development impact. Every investment IFC makes is assessed not only by its financial performance but also by its ability to improve lives, create jobs, and build sustainable business ecosystems. By contributing $65 million to A91 Partners’ third fund, IFC aims to expand access to capital for businesses that are often ignored by larger global funds or traditional lenders.

A91 Partners, founded by ex-Sequoia Capital executives, is well-regarded for identifying high-potential businesses and guiding them through critical growth phases. Its previous funds have invested in companies across sectors and helped many reach operational maturity and profitability. The involvement of IFC in Fund III elevates the stature of the fund, signaling strong governance, sound investment principles, and alignment with long-term development goals.

For IFC, this investment represents a deeper dive into India’s private equity landscape. Over the past several years, IFC has backed numerous alternative investment funds that target high-growth regions, and India remains one of its top geographies. The Indian market offers an exciting combination of scale, talent, and innovation—all factors that attract development-focused capital.

This funding move also emphasizes IFC’s commitment to empowering small and medium enterprises (SMEs). These companies make up the backbone of India’s economy, yet they often lack access to structured growth capital. With A91 Partners as an intermediary, IFC can deploy its resources to companies that are ready to scale but need strong guidance and funding to break into new markets.

One of the most impactful aspects of IFC’s investment strategy is its insistence on high environmental, social, and governance (ESG) standards. Every fund or company that receives IFC’s capital is expected to comply with rigorous sustainability and ethical benchmarks. A91’s alignment with these principles made it an ideal candidate for IFC’s support. This ensures that the businesses backed by Fund III will grow responsibly and remain accountable to stakeholders and communities.

IFC’s $65 million investment will also create a ripple effect within the fundraising process. Typically, when a global institution like IFC joins a fund, it draws attention from other institutional investors seeking safe and impact-driven placements. This could accelerate the fundraising timeline for A91’s third fund and help it reach or surpass its $600 million target. Additionally, IFC often offers technical assistance, governance training, and operational insights, adding value far beyond capital infusion.

In a rapidly digitizing and competitive Indian economy, IFC’s funding comes at a crucial time. More startups are transitioning from early-stage to growth-stage, where capital needs are higher and risk perception is different. A91 Partners is uniquely positioned to bridge this gap, and IFC’s partnership enhances its credibility, network, and capacity to support these businesses.

Furthermore, the partnership holds potential for future collaborations. IFC often engages in co-investments with the funds it supports, bringing further capital and expertise to successful portfolio companies. This long-term relationship-building strategy enables greater scalability and fosters resilient ecosystems within the target markets.

This announcement also reaffirms IFC’s larger strategy of influencing development through private capital. Instead of directly investing in hundreds of companies, IFC leverages its capital by supporting credible, market-savvy fund managers who can amplify impact across multiple sectors. A91 Partners’ Fund III fits perfectly within this strategy, promising returns that are both financial and developmental.

As IFC continues to deepen its footprint in India, investments like the one in A91 Partners will serve as blueprints for how capital, when directed thoughtfully, can transform business landscapes and uplift communities.

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