Japan International Cooperation Agency (JICA) has committed $40 million to Aavishkaar Capital’s Global Supply Chain Support Fund (GSC Fund), marking the Japanese development finance institution’s latest bet on impact investments in Asia and Africa.
The announcement was made by Japanese Prime Minister Shigeru Ishiba during the “Economic Partnership in Indian Ocean – Africa Forum” in Yokohama, held on the sidelines of the Tokyo International Conference on African Development (TICAD 9) earlier this week.
The GSC Support Fund, launched in 2022 with a €50-million ($58 million) anchor commitment from German development bank KfW, targets small and medium-sized enterprises (SMEs) engaged in international supply chains. Its strategy centres on providing structured credit to manufacturing and agribusiness companies that export to global markets, with a focus on climate and social impact.
DealStreetAsia had reported earlier this week that Aavishkaar was close to announcing a commitment from an Asian development finance institution (DFI). The firm is also set to invest in a Vietnamese manufacturer from the fund, which already counts seven portfolio companies across India, Southeast Asia, and Africa. Investments range from $3-5 million; in April, the fund backed POSHS Metal Industries, a steel processor in India’s Maharashtra state supplying Tata Steel.
The vehicle has a target hard cap of $220 million, with flexibility to expand to $250 million. It is Aavishkaar Capital’s eighth fund and part of the broader Aavishkaar Group, which manages more than $1.3 billion in impact assets.
JICA senior vice president Mikio Hataeda said the commitment builds on a “long-standing relationship” with Aavishkaar, adding that the investment would help elevate the India-Japan partnership while extending impact into Africa.
Vineet Rai, founder of Aavishkaar Group and managing partner of Aavishkaar Capital, said, “This reflects the long-standing tradition of Indo-Japan economic cooperation,” noting the fund’s role in building resilient, climate-aligned supply chains in emerging markets.
The move comes as Aavishkaar positions itself against a muted fundraising backdrop for private capital in Asia. The firm closed its $150-million India Fund VI in late 2023 with commitments from IFC, British International Investment, and Swiss Investment Fund for Emerging Markets. It is preparing to launch India Fund VII and exploring a $500-million financial inclusion fund focused on domestic opportunities.
