India’s homegrown private equity (PE) firm A91 Partners, founded by former Peak XV executives, has closed its third fund at $665 million, the firm said in a LinkedIn post on Tuesday.
Last month, the International Finance Corporation (IFC), a member of the World Bank Group, had proposed an equity investment of up to $35 million in the fund, along with a potential co-investment envelope of up to $30 million.
According to IFC’s disclosure, A91’s new fund will provide growth capital across sectors such as consumer, financial services, healthcare, manufacturing, and technology. From the new vehicle, the firm plans to invest between $10 million and $50 million in around 15 companies.
Per an earlier Economic Times report, A91 had set a target corpus of $700–750 million for this fund.
The firm has backed several Indian companies, including Blue Tokai Coffee, Atomberg, Digit Insurance, HealthKart, and Paper Boat. A91 raised its first fund of $350 million in 2019, from which it made 14 investments. It is currently deploying capital from its second fund, which has a total corpus of $550 million.
The close of A91’s latest fund adds to a series of fundraising milestones in India’s private equity landscape. InCred Alternative Investments, part of the InCred Group, recently completed the final close of its maiden PE fund at Rs 575 crore ($67 million), surpassing its original Rs 500 crore target. Meanwhile, ChrysCapital has reportedly raised $2.1 billion for its latest fund.
Separately, KKR-backed Avendus Capital marked the first close of its third private equity fund at Rs 850 crore ($98 million), recently making its debut investment by acquiring a minority stake in Indian pharmaceutical firm La Renon Healthcare for $18.3 million from two existing investors.
Private equity investments in India so far this year have already surpassed levels recorded in the first four months of 2024. From global giant KKR to Singapore state investor Temasek, PE investors have pumped $8.56 billion into the country between Jan.1 and April 15 this year, compared with $8.33 billion in the first four months of 2024, according to data from research firm Venture Intelligence.
