IFMR Investments in partnership with Mann Deshi proposes to set up a first of its kind Category I Alternative Investment Fund (AIF) focussed on promoting women micro-entrepreneurship. While Microfinance Institutions (MFIs) have provided an initial cushion, enabling women entrepreneurs to set up their businesses and smoothen income shocks, women micro entrepreneurs continue to face financial hindrances while growing their business. The fund, with a target size of INR 100 crores (including a green shoe option of INR 50 crores) will be specifically designed to cater to the working capital and business growth requirements of women micro-entrepreneurs through a mix of debt and grant financing.
Debt investments and Grants through the AIF will be provided to IFMR Capital partner originators as well as other institutions that help in achieving the stated objective by acting as an enabler in promoting entrepreneurship among women. The proportion of investments through debt securities will consist of investments that provide a combination of commercial returns and muted returns.
The proposed AIF will invest in those areas that have a direct and indirect benefit towards creating an ecosystem that will enable the development of women micro entrepreneurs. These areas include low cost housing, skill development, financial literacy, fintech and agri financing, innovations in product financing, assistance in creation of assets, clean energy, sanitation and education.