British International Investment

Growth Catalyst Partners

IndiaSouth AsiaConsumer - HealthFinancial servicesFood & Agriculture

Lok Capital is an impact investor which promotes inclusive growth in India by making long-term equity investments. It has operated since 2004. Its Growth Catalyst Partners LLC fund will focus on providing accessible finance to India’s underserved communities. It also looks to expand into the agriculture and affordable healthcare sectors.

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

Our investment

Description of the investment.

CDC first invested in Growth Catalyst Partners LLC in 2016, investing $15 million as an anchor investor. We have made follow-on commitments in 2017 and 2020.

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

Improve access to financial services namely microloans, home loans, microbusiness loans and insurance resulting in a higher quality of life and more resilient livelihoods (SDG 1.3).

How?

How?

Strengthen the balance sheet and allow resumption of lending in 6 financial institutions.

Who?

Stakeholder Geography Characteristics
Customers

Pan-India

Low-income with limited savings, but often digitally connected. Average 88 per cent women (mostly via joint group loans).

How much?

Scale Depth/Duration

4.1 million customers. The investment will enable an increase of 2.9 million customers by 2025.

25 per cent of customers report improvements in financial security and saving capability.

Contribution/additionality

Contribution/additionality
  • Financial additionality: The commercial market does not offer capital in sufficient quantities to meet the company s plans and needs.
  • Value additionality: Supporting improvements in business integrity systems and processes.
  • Mobilisation: Our commitment is a positive signal to other investors

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 Since 2022 it has been replaced by the Impact Score.

2.7

Risk

Execution Risk
  • Given the volatility of the business environment, additional capital might not be enough to enable companies’ financial recovery.
Unexpected Impact Risk
  • risk of customers’ Inability to pay loans. Likelihood of this reduced by good customer protection principles in place.

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 are working closely with the fund manager to improve its existing ESMS, including delivering an action plan.

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.

    :
    March 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D199
    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
    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.

    :
    Consumer - Health, Financial services, Food & Agriculture

    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 :
    April 2016
    Amount :
    $15m
    Currency of investment :
    USD
    Fund Manager:
    Lok Capital
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius

Related investments made by BII into this fund:

Investment name Commitment Region Sector Start date Status
Investment 02 $5m South Asia Consumer - Health, Financial services, Food & Agriculture August 2017 Active

Investments made by this fund into companies:

For further information about these companies, visit http://www.lokcapital.com/

Investment name Country Region Sector Start date Status
AkshayaKalpa Farms and Foods Private Limited India South Asia Food & Agriculture September 2019 Active
Dr Mohan’s Diabetes Specialities Centre (DMDSC) India South Asia Consumer - Health April 2017 Exited
HR Food Processing Private Limited India South Asia Food & Agriculture November 2016 Active
Mintifi India South Asia Financial services September 2017 Active
Monsoon Harvest (Green Light Foods) India South Asia Food & Agriculture June 2016 Exited
RenewBuy India South Asia Financial services September 2019 Active
Suryoday Small Finance Bank Limited India South Asia Financial services February 2017 Active
Ummeed Housing Finance Pvt Ltd India South Asia Financial services September 2016 Exited
Use Kiwi Info Labs (AffordPlan) India South Asia Financial services March 2018 Exited
Utkarsh Small Finance Bank India South Asia Financial services September 2016 Active
Veritas Finance Private Limited India South Asia Financial services November 2017 Active
Wingreens Farms Private Limited India South Asia Food & Agriculture December 2021 Active

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