Aavishkaar MSME

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The proposed project is an investment in Aavishkaar India II Company Ltd. (“AVI II” or the “Company” or “Fund”), a fund focused on financing early stage venture enterprises targeting fundamental market needs in rural and semi-urban areas in India. The “Fund” will focus on scaling up affordable models targeting the “Bottom of the Pyramid” in healthcare, water and sanitation, education, agriculture, renewable energy and other emerging sectors. The proposed project is a successor fund to Aavishkaar India Micro Venture Capital Fund (AIMVCF), a 2007 MSME-focused fund of $14 million, which is fully committed. AIMVCF has invested in 23 companies (of which around 35% are directly operational in Low Income States (LIS) while the others are also focused on underserved India (segment of rural and semi-urban Indian populace that has been left out from the mainstream development process) across healthcare, education, dairy, technology, agriculture, and handicrafts with an outreach of over a million disadvantaged people. Some of the investments of AIMVCF include:- GV Meditech - a group of hospitals providing affordable (low-cost; at a price point affordable by the rural Indian populace) and high-quality healthcare in Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh and Chattisgarh. B2R (Business to Rural) Technologies - a rural Business Process Outsourcing (BPO) business in Uttarakhand that offers quality cost-effective services, while creating employment opportunities for rural youth. Saraplast Private Limited manufactures and leases ‘Portable Toilet Cabins’ and provides cleaning, evacuation and waste disposal services to manual construction workers (esp. women), slums and tourist sites. Milk Mantra – a dairy company that is building a strong dairy supply chain network in the state of Orissa. Vortex Engineering designs and manufactures low cost solar powered ATMs, with the aim of facilitating access to banking services in remote rural regions of India. Waterlife provides rural communities with potable drinking water by setting up village-level water purification plants in states such as Bihar and Uttar Pradesh. AVI II will continue to support the investment themes of its predecessor fund, including a strategic focus on low income states (“LIS”) and the “Bottom of the Pyramid” in India (current pipeline includes approximately 40-50% deals in LIS). The proposed “Fund” will be incorporated under the laws of Mauritius as a private limited company.