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Through a new USD 5 million commitment to the LOK III fund, Proparco supports companies in the financial inclusion sector impacted by the Covid-19 crisis and helps them to reinforce access to credit for MSMEs and the most fragile populations in India.

Since 2010, Proparco has partnered with the fund manager LOK Advisory Services, one of the forerunners in investment in financial inclusion and social sectors in India.

In 2016, Proparco initially invested USD 10 million in the LOK III fund – Growth Catalyst Partners, which invests in financial inclusion, healthcare and agribusiness. The Covid-19 crisis brought new challenges for companies in the financial inclusion space in India, and, in order to further support its portfolio, LOK created a dedicated facility, with a size of over 30 MUSD.

Thanks to Proparco's investment - alongside other development finance institutions (CDC, FMO, OBVIAM) and private investors – LOK will be able to further invest in its financial inclusion portfolio, thus enabling them to support MSMEs and the most fragile populations, while maintaining their growth trajectory.

 

In addition to its equity investments in LOK II (9.5 MUSD) and LOK III (10 MUSD), Proparco is also financing two technical assistance (TA) facilities managed by LOK:  the first one aims to strengthen the operational capacities, governance and E&S performance of the companies and, in July 2020, Proparco granted a new TA subsidy to LOK portfolio companies in the agribusiness and healthcare sector, to help them face increased costs from Covid-19 adaptation measures.