Insitor Partners on Tuesday said it has marked the first close of its Insitor Impact Asia Fund II (IIAF II) at $42 million with the Dutch Good Growth Fund (DGGF) as well as two core investors from Insitor’s previous fund - the UK government’s British International Investment (formally CDC Group) and Insitor’s founding family offices participating in the round.
Insitor is targeting the end of 2022 to complete the second close of the $70 million IIAF II fund.
Insitor has also signed an agreement with CDC Capital Group recognising their IIAF II fund as the first 2X Pioneer Flagship Fund in Asia to empower women in emerging economies, the statement noted.
Across its primary investment themes of better health, sustainable living, and economic growth, the fund expects to make 12–15 investments in high-growth and scalable ventures.
The fund will invest in firms from the pre-Series A to Series A stage, as well as offer follow-on finance as portfolio companies grow.
The new fund is also expected to cooperate with limited partners to co-invest in larger deals.
Insitor noted that as a 2X Flagship Fund, it is dedicated to investing with a gender lens to ensure that at least 30% of its portfolio fits the 2X requirement.
As a fund manager, Insitor also pledges to promote and preserve gender balance. Insitor was founded and is headed by a woman, with 50% female employees in senior management roles and across the whole workforce.
After the first closing, Insitor has completed three investments: Trellis, a housing finance provider based in Karachi that uses a fully digital origination platform to accelerate housing finance deployment; MedKart, a low-cost, high-quality generic drug B2C distributor in India that allows patients with chronic illnesses to save an average of 85% on their drug treatments and Taleem, a financial institution that serves Pakistan's education system.
Insitor was the first impact fund manager with a local presence in Cambodia and Myanmar, as well as an early player in India and Pakistan, when it was founded in 2009.
It has made 27 investments in the region so far, resulting in the creation of 14,000 employment, claims Insitor.
“With this new fund, we will continue to back pioneering founders who are building new markets and industries. We work closely with founding teams to scale their businesses, which enables us to create a multiplier effect on our initial investment,” Micaela Ratini, Insitor’s CEO said.
“Across Cambodia, India and Pakistan, women continue to be an under-utilized resource in unlocking higher rates of economic development. Advancing gender equality not only works towards inclusive economic growth but also makes business sense: there is significant evidence showing that involving women in supply chains leads to higher productivity, returns on investment and increased consumer satisfaction,” added Nicholas Lazos, Insitor’s Chief Investment Officer.
Singapore-based Insitor Partners back entrepreneurs who are building solutions for low-income consumers in developing Asia.
Insitor Partners has made 27 investments across the region, providing a direct impact to more than 40 million people served by its portfolio companies across Cambodia, India, Myanmar, and Pakistan, the statement said.
