IFC plans to invest $20M in Chiratae’s Fund IV

Washington-based World Bank’s investment firm International Finance Corporation (IFC) plans to invest $20 million in Chiratae Ventures, previously known as IDG Ventures.

IFC said in a disclosure that it will invest in Mauritius-incorporated Chiratae Ventures International Fund IV LLC and India-domiciled alternative investment fund Chiratae Ventures Master Fund IV. Both funds are collectively referred to as Fund IV, it added.

IFC’s board meeting is expected to happen on September 30 to discuss this investment proposal. 

IFC expects its proposed investment to have a positive impact in terms of the increased access to equity for innovative early stage technology companies. Also, it hopes to see the development of more products and services for consumers, particularly in non-Tier I cities.

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Established in 2007 by Sudhir Sethi and TCM Sundaram, Chiratae is an early stage venture fund focusing on Indian startups. It invests in consumer media and technology, health tech, software/ SaaS and fintech firms and has so far supported over 75 ventures in seed, early, and expansion stages. 

Currently, the fund has nearly $470 million under advisory. Companies in its portfolio include Bizongo, Nestaway, Bounce, PlayShifu, Early Salary, Miko and CureFit. The VC fund rebranded itself to Chiratae last year. 

Previously, in 2017, IFC had invested in the third India-focussed fund of Chiratae, which was then known as IDG Ventures India Fund III. 

This August, IFC proposed infusing $25 million in the second fund of healthcare-focussed private equity firm Quadria Capital. The Fund II, which has a target size of $400 million and a hard cap of $500 million, hit its first close at $194 million in March.

It also backed a debut venture capital fund of investment firm A91 Partners by putting in $25 million as LP. The target corpus of the A91 Emerging Fund I LLP was pegged at $250-300 million. 

(Edited by Megha Reddy)

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