IFC has committed $60 million to Motilal Oswal Alternates’ fifth fund to support the expansion and job creation of mid-market companies in India.

Information on the Target

Motilal Oswal Alternates, the private investment arm of Motilal Oswal Financial Services Ltd, has launched its fifth vintage fund, India Business Excellence Fund V G. This fund is set to focus on mid-market companies in various sectors, including consumer goods, financial services, life sciences, and manufacturing. With a target size of $750 million—plus a green-shoe option of $150 million—the fund aims to support 12 to 16 mid-market companies that demonstrate significant growth potential, particularly those operating in underserved regions of India.

Alongside a $60 million equity investment from IFC (International Finance Corporation), the fund also includes an additional $60 million co-investment envelope, allowing for strategic investments in future opportunities. The primary objective is to stimulate economic growth and job creation by enabling businesses to adopt advanced technologies and extend their reach beyond major urban centers, thereby uplifting low-income states.

Industry Overview in India

The mid-market sector in India plays a pivotal role in the nation’s economic landscape, contributing substantially to job creation and financial sustainability. Despite their importance, these companies frequently face challenges such as limited a