IFC Exiting Indian Investments Due to Achievement of Minimum Profit Targets
In the bustling world of Indian business, some significant changes are afoot as major international investors are making their exit from various sectors.
The Carlyle Group, a global investment firm, has announced its departure from YES Bank, a leading financial institution in India. The details of this exit are yet to be disclosed, but it forms part of a larger trend expected to harvest $2 billion by 2025.
Similarly, the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, is also parting ways with several Indian companies. IFC, known for its backing of private equity and venture capital funds, is exiting from a FMCG firm, while ending a near-decade-long investment in healthcare in India. The specifics of these investments, including the nature and terms, remain undisclosed.
However, the investment in Indian healthcare has resulted in moderate gains for IFC. Meanwhile, Motilal Oswal Alternatives (MOA) is considering an exit from a FMCG firm, adding to the list of departures.
Creador, another global investor, is also exiting from its India tech portfolio. The exact details of these exits are not specified, but it's clear that a shift is underway in the Indian market.
Interestingly, the Limited Partners who invested alongside the IFC in Groww, a fast-growing Indian fintech platform, include marquee investors such as Peak XV Partners, Y Combinator, Ribbit Capital, Tiger Global, and ICONIQ Capital (through its affiliate ISP VII-B Blocker GW). Despite the exit of IFC, Groww, which is preparing to go public, still has the backing of these prominent investors.
Peak XV, Ribbit Capital, and Y Combinator are also investors in Groww, indicating a continued interest in Indian startups, despite some investors choosing to exit.
As these changes unfold, it will be interesting to see how the Indian market adapts and what new opportunities will emerge for both local and international investors.
