EIB Global announces $ 40 m for private equity fund supporting digitalisation of Indian SMEs

The European Investment Bank (EIB), the largest multilateral public bank in the world, last week announced a $ 40 million commitment for private equity fund to support digitalisation of SMEs in India.

The funding is via EIB Global which makes investments outside European Union and the Indian SMEs in various economic sectors will be supported in partnership with Amicus Capital, an India-dedicated early growth capital fund.

The fund seeks to leverage digitalisation and technology to overcome geographic limitations and facilitate deeper market penetration. It does this by prioritising investments in digital-first business models, working with companies to strengthen their existing technology infrastructure and helping management design clear digitalisation roadmaps to boost digital transformation in conventional businesses. 

The fund’s strategy of using digitalisation to support market access across a range of economic sectors is well aligned with the objectives of the Global Gateway initiative. Global Gateway supports sound projects that improve global and regional connectivity, and works with partner countries to address the digital divide and further integrate into the global digital ecosystem. Amicus Capital Partners Fund II will also help local businesses expand, providing goods and services to underserved regions and populations and fostering sustainable, inclusive growth. “I’m delighted to announce this EIB support for Amicus Capital Partners Fund II, a fund that pursues a targeted investment strategy combining digitalisation and market access to foster inclusive economic growth across various sectors in India, in alignment with the strategic EU priorities in India. In a challenging fundraising environment, this investment promises high additionally, and will promote crowding-in and the diversification of the investor base,” said EIB Vice-President Kris Peeters.

“We are excited to bring the EIB on board as a key investor in the fund. This represents a significant milestone in our journey. The EIB’s participation will further catalyse private capital into Amicus Capital Partners II. The fund will leverage on the global investment experience of the EIB team to help Amicus Capital support middle-market companies in India in their digitalisation and market access efforts,” added Amicus Capital Co-founder and Partner Mahesh Parasuraman.

EIB Global in 2022 financed around € 10.8 billion in investments outside the European Union. Since it began operations in India in 1993, the EIB has supported 26 projects and invested close to € 5 billion in transport, energy, agriculture, fisheries and forestry, as well as in the country’s SMEs. Amicus Capital currently has assets under management of $ 246 million across two funds.