FMO, the Netherlands’ development finance company, plans to invest $15 million (Rs 107.4 crore) in the fourth fund of Indian impact investor Lok Capital.
“The firm intends to commit to the fund at first close to support its fund raising and allow it to reach its target size of $150 million,” FMO said in a disclosure.
FMO has previously committed to other funds raised by Lok Capital, it added.
The impact investor had launched the fourth fund -- Lok Capital Growth Fund IV -- late last year. Earlier this year, VCCircle reported that Lok Capital was looking to make the fund's first close by September.
Founded in 2004, Lok Capital raised $22 million for its first fund, $65 million in its second outing and $90 million in its third attempt. The first two funds focused on brick-and-mortar businesses in agriculture, healthcare and financial services sectors.
Previously, the firm invested in companies such as Ujjivan Financial Services, Vistaar Financial Services, RuralShores, Drishti Eye Care, Everest Edusys and Hippocampus Learning Centres.
Last month, VCCircle reported that Lok Capital had invested in a Karnataka-based company that produces and sells organic milk and dairy products.
FMO
The Dutch investor finances projects through equity and debt investments in sectors such as agri-business, food and water, energy and financial institutions in under-served regions.
Earlier this month, FMO said it planned to make an investment of $42 million (about Rs 290 crore) in social-impact investor and asset manager Aavishkaar Venture Management Services Pvt. Ltd.
Besides making Limited Partner-style bets in venture capital funds, it has also made direct investments in India.
In June, it announced plans to make a debt investment of $30 million (Rs 209 crore) in Kolkata-based Srei Equipment Finance Ltd, a wholly owned unit of Srei Infrastructure Finance Ltd.
In the same month, it invested in Mumbai-based Nomisma Mobile Solutions Pvt. Ltd, which owns digital payments and loans platform Ftcash.
In March, VCCircle reported that FMO invested $5 million (around Rs 34.5 crore) in Husk Power Systems Pvt. Ltd, which supplies off-grid power to rural areas.