Aavishkaar Capital (Aavishkaar), an Indian-based impact fund managing company has partnered with KfW, a German state-owned investment and development bank. The two companies have launched a Ksh. 28.2 billion ESG First Fund focused on strengthening the Environmental, Social and Governance (ESG) practice of mid-cap businesses while offering them flexible capital to scale to new markets.
The ESG First Fund is a fund focused on investing in Africa and Asia with the mandate of generating superior ESG outcomes and commercially viable financial returns. This is Leveraging on the global drive for sustainability and equality, the alongside positive social impact.
The ESG First Fund seeks to provide transformational capital which can be invested across the capital structure. This is in turn expected to help businesses improve their ESG standards so they can capitalize on the increasing consumer preference for ecologically-conscious, gender-equal and purpose-driven businesses. The Fund further aims to partner with mid-cap businesses and entrepreneurs sharing Aavishkaar’s goal for enhanced ESG standards to deepen their access to markets in Europe.
Commenting on behalf of BMZ, Federal Ministry for Economic Cooperation and Development Germany, Anosha Wahidi, Head of Division 120 – Policy on sustainability in global supply chains, Commissioner for sustainability standards said, “With our investment of 50 million euros, we want to help set up a fund that demonstrates that increased respect for ESG can be a viable investment and business model. The German government has passed a due diligence law that obliges German companies to pay attention to social and ecological sustainability in their global supply chains.”
Aavishkaar Group Founder and Chairman, Vineet Rai said, “ESG First fund takes forward the Aavishkaar Group vision to bridge the opportunity gap for the emerging 3 Billion with its focus on ESG, Africa- Asia region, flexible instruments, Gender and climate change. The ESG First fund underscores the unique partnership that Aavishkaar Group has built with KFW Group to develop rapidly innovative products and launch them quickly with trust and long term impact as the bedrock of this partnership.”