India: Proparco is supporting financial inclusion and the agri-food sector

India Progress Fund I (IPF) is an impact investment fund with over EUR 50m (1st closing) dedicated to financial inclusion and the agri-food sector in India. It targets innovative, high-growth start-ups so that it can act as a catalyst for their institutionalization.

The fund targets financial service providers that focus on disadvantaged people in rural areas (non-bank financial companies and fintechs) and companies in the post-harvest agri-food sector (marketing, distribution, services, etc.).

The project involves an equity investment in a fund incorporated under Indian law, the Alternative Investment Fund, which is dedicated to financing companies operating in India. It is the third investment vehicle managed by the asset manager Incofin Investment Management, the originator of the IPF fund, which Proparco is investing in.

The project will support the growth of about 11 companies operating in the agri-food and financial services sectors in rural areas, some of which target poorly served groups, particularly rural smallholders. It will also help maintain or create over 4,300 jobs by 2025, with women accounting for an average of 30% of employment in the beneficiary companies.

The project should thereby contribute to the achievement of several Sustainable Development Goals: SDG 2 (“Zero hunger”), SDG 8 (“Decent work and economic growth”), SDG 9 (“Industry, innovation and infrastructure”), SDG 10 (“Reduced inequalities”) and SDG 12 (“Sustainable consumption and production”).