Global Environment Fund raises $124m for Indian SMEs

Private equity firm Global Environment Fund (GEF), has raised USD124 million for a fund which targets small and medium enterprises in India. It is the first niche fund of its kind in the country.

Raj Pai, managing director, Global Environment Fund Advisors India, told LiveMint that GEF plans to do three to four transactions in India a year, taking minority stakes anywhere between USD3 million and USD15 million. The GEF South Asia Fund will also invest in Nepal, Sri Lanka and Bangladesh.

"India is a maturing market; it needs local approach and presence. One cannot do offshore investments any longer. The market needs a dedicated pool of capital and people," said Pai.

The fund and the International Finance Corp have already committed USD11.5 million to Bangalore-based energy efficiency firm Kalki Communication Technologies. Kalki is expected to quadruple its revenue in the coming four years.

GEF has previously invested in India through its global vehicles and has bet over USD100 million across eight deals. Its current portfolio companies include Sai Sudhir Infrastructures and Greenko Group, the wind energy player that received backing from TPG Capital and last year established a joint venture with General Electric.