British International Investment

Chiratae Ventures International Fund IV

IndiaSouth AsiaSouth AsiaCommunications & IT servicesConsumer - EducationConsumer - HealthConsumer - other servicesFinancial servicesFood & AgricultureManufacturing

The fund targets companies whose technologically disruptive solutions and scale-up potential can reach large parts of the Indian population, helping to increase economic opportunities and market participation for the next 400 million Indian consumers, employees, and suppliers.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

Our investment in the fund will support the growth of highly scalable, tech-enabled companies in India, with the aim of creating large-scale employment for underserved groups and increasing the availability, affordability and accessibility of goods and services.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact
  • Provide and enhance economic opportunities (SDG 8.5).
  • Enhance access to affordable, quality healthcare (SDG 3.C).
  • Improve access to financial services, enhancing household well-being and resilience (SDG 1.4).

How?

Primary Secondary
  • Direct: Providing seed to later stage capital to approximately 40 early-stage companies, enabling their growth and generating direct employment.
  • Direct: Through investments in telemedicine, new medical products (c. 15 per cent in Fund III).
  • Direct: Through investments in technology to provide affordable access to goods and services, such as finance (c. 20 per cent in Fund III).

Economic enabler: Chiratae will invest in tech-enabled platforms that connect local workforce and suppliers to markets (c. 10 per cent of portfolio in Fund III) as well as to resources and inputs required to meet that demand.

Who?

Stakeholder Geography Characteristics
Employees, micro-entrepreneurs

Pan-India - mainly Tier 1 and Tier 2 cities, some companies may also reach populations in smaller cities and rural areas.

  • Direct employees are likely to be relatively high income.
  • Tech platforms are likely to reach lower income segments of the workforce and small-scale entrepreneurs e.g. drivers (BlowHorn), farmers (Agrostar, ULink).
  • Employees and microentrepreneurs reached through providing affordable access to good and services like finance: middle and low-income e.g. Credit Mantri (Fund II) targets borrowers with negative or no credit history; EasySalary targets blue and grey collar workers.
Consumers

Pan-India - mainly Tier 1 and Tier 2 cities, some companies may also reach populations in smaller cities and rural areas.

Likely middle income, although some companies may reach lower-income segments.

How much?

Scale Depth/Duration
  • The venture capital model implies the potential for large scale, over a long-term horizon. If successful, companies have the ambition to reach millions; however, this is likely to only come from a subset of companies.
  • Employees and microentrepreneurs: Fund I-III companies have created 58,000 jobs and employ over 60,000 people. Platforms have the ambition to reach hundreds of thousands, e.g. intra-city logistics platform Blowhorn has 25,000 active drivers. Credit Mantri has improved credit scores for 1.3 million customers and helped them access $90 million worth of loans.
  • Consumers: e.g. Onco.com caters to over 25,000 cancer patients; Forus Health provides affordable eye check-up services to tens of thousands of patients daily.
  • Employees and microentrepreneurs: Quality of employment and improvement in economic opportunities will be highly variable. Impact is likely to be deeper for low-skilled labour and populations in rural areas, e.g. Blowhorn drivers report an average 25 per cent increase in earnings.
  • Consumers: Variable depending on the nature of goods and services provided and the population reached.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Our capital will help the fund near its target size ($275 million) and complete additional investments, increasing the fund’s impact
  • Value additionality: Enhancement of environmental, social and business integrity practices. Enrolment in the 2X Challenge for women’s economic empowerment.
  • Mobilisation: Our commitment unlocks an additional $5 million from other investors, namely the IFC, AEROW SMA I L.P, and SA-EL Asia I S.C.S

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

2.0-2.2

Market context: In India, only 0.3 per cent of new businesses that are launched are financed by venture capital vs 0.6 per cent in the US.

Risk

Alignment Risk
  • Relates to the risk that follow-on capital is allocated to companies that are not aligned to our impact ambition. This is not a risk that we can mitigate as decisions will purely be driven by commercial performance, However, we will use our venture capital scale-up programme to allocate additional capital to the most impactful businesses and support their growth in instances where the fund manager may have more limited appetite or dry powder.
Execution Risk
  • Relates to the risk that businesses will fail to scale and deliver on the expected impact. This is an inherent risk to the venture capital model which is mitigated by selecting an experienced fund manager.
Unexpected Impact Risk
  • by cutting out intermediaries and / or corporate functions, some investees will reduce existing jobs, which is likely to negatively impact more vulnerable and less skilled segments of the population. This risk cannot be mitigated.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We will work closely with the fund manager to develop and implement an ESMS appropriate for the asset class.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    January 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D4055
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    South Asia
    Country

    The countries from which we derive the value of our investment. Where value is derived from multiple countries, this is indicated.

    :
    India, South Asia
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Consumer - Education, Consumer - Health, Consumer - other services, Financial services, Food & Agriculture, Manufacturing

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    June 2020
    Amount :
    $10m
    Currency of investment :
    USD
    Fund Manager:
    Chiratae India Investment Manager
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    :
    Fully qualified

Investments made by this fund into companies:

For further information about these companies, visit https://www.chiratae.com/

Investment name Country Region Sector Start date Status
Abita Innovations Private Limited (Doc32) India South Asia Consumer - Health November 2020 Active
Absentia Virtual Reality Private Limited (Pyxis) India South Asia Communications & IT services March 2020 Active
Aether Biomedial Sp, Z.o.o India South Asia Communications & IT services April 2020 Active
Alpha Digital Health Pvt Ltd India South Asia Consumer - Health November 2020 Active
Blitzscale Technology Solutions Private Limited (Wmall) India South Asia Communications & IT services December 2019 Active
Brainbees Solutions (Firstcry) India, South Asia Asia, South Asia Consumer - other services March 2021 Active
Cavli Wireless India South Asia Communications & IT services December 2022 Active
Chakadola Technologies Private Limited (Good Meetings) India South Asia Communications & IT services June 2021 Active
CropIn Technology Solutions Private Limited India South Asia Food & Agriculture December 2020 Active
Curefit Healthcare Private Limited India South Asia Consumer - other services November 2019 Active
Curefoods India Private Limited (Eatfit) India South Asia Consumer - other services December 2021 Active
DPD Technologies (Queuebuster) India South Asia Communications & IT services June 2022 Active
Ergos Business Solutions Private Limited India South Asia Food & Agriculture October 2020 Active
Getvantage Tech Pvt Ltd India South Asia Financial services October 2020 Active
Globalbees Brands India South Asia Communications & IT services July 2021 Active
Healthifyme Pte Ltd India South Asia Consumer - Health June 2021 Active
Hevo Data Inc India South Asia Communications & IT services September 2021 Active
KBCols Sciences Pvt Ltd (KB Col) India South Asia Consumer - Health July 2020 Active
Khati Solutions Pvt Ltd (Oye Rickshaw) India South Asia Communications & IT services February 2020 Active
Lenskart Solution India South Asia Communications & IT services July 2021 Active
Locofast Online Services Pvt Ltd India South Asia Communications & IT services January 2020 Active
MyScoot Inc (Exly) India South Asia Communications & IT services March 2022 Active
Newbazaar Technologies (Shopse) India South Asia Communications & IT services March 2021 Active
PB Fintech Private Limited (Policybazaar) India South Asia Financial services September 2020 Exited
Quaking Aspen (Pando) India South Asia Communications & IT services January 2020 Active
R N Chidakashi Technologies (Emotix) India South Asia Communications & IT services August 2021 Active
Real Learning Technologies (Quest) India South Asia Consumer - Education March 2021 Active
Redcliffe Lifetech India South Asia Consumer - Health March 2022 Active
Rodeo Travel Technologies Pvt Ltd India South Asia Communications & IT services January 2020 Active
Science for Society Techno Services (S4S) India South Asia Communications & IT services September 2022 Active
Smartfin Inc (Workomo) India South Asia Communications & IT services January 2020 Exited
Smartpaddle Technology Private Ltd India South Asia Manufacturing December 2021 Active
Squadrun Inc India South Asia Communications & IT services January 2020 Active
Targetone Innovations Private Limited (Gomechanic) India South Asia Communications & IT services December 2019 Exited
Ulink AgriTech Private Limited India South Asia Food & Agriculture December 2021 Active
Uniphore Software Systems Private Limited India South Asia Communications & IT services November 2019 Active
Uniphore Technologies Inc India South Asia Communications & IT services June 2021 Active
Vay Networks Services Pvt Ltd India South Asia Communications & IT services November 2021 Active
Wandx Solutions (Shine) India South Asia Communications & IT services March 2021 Active
Weinnovate Biosolutions Private Limited India South Asia Consumer - Health August 2020 Active

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