New Delhi, May 11 -- India Alternatives, a mid-market private equity firm led by Shivani Bhasin Sachdeva, is set to bring an overseas returning limited partner to back its third sector-agnostic investment vehicle.

The PE firm, which counts women's health company Gynoveda and drug marketing and distribution company GoApptiv in its portfolio, is set to secure a commitment of up to $20 million (Rs 190 crore) from International Finance Corporation, the private-sector investment arm of the World Bank Group.

The global development finance institution has also proposed another $20 million as a co-investment envelope, according to a disclosure.

India Alternatives Private Equity Fund III is looking to mop up $160 million (Rs 1,523 crore) and will target themes such as women's consumption, Gen Z and millennials' consumption, technology and financial services, health and wellness, and climate and sustainability.

The development comes over a year after VCCircle reported last March, citing people aware of the firm's plans, that India Alternatives was set to launch its third fund and aimed to raise Rs 1,000 crore.

IFC was also an LP in India Alternatives' second fund, which launched in 2020 and aimed to raise $70 million. IFC committed around $10 million (around Rs 76 crore then) to the second fund.

Founded in 2011 by Sachdeva, India Alternatives focuses on sectors such as technology, healthcare, consumer goods, education, financial services, and companies targeting women-oriented consumption, health and wellness. Its first fund raised around Rs 230 crore from domestic institutions.

The firm exited all four companies it backed in its first fund: lingerie manufacturer Enamor, credit information firm TransUnion CIBIL, animation company Ideacount, and data security solutions provider Seclore. According to its website, these exits delivered a 4.5x return to investors. While the Enamor exit was considered below expectations, the exit from TransUnion CIBIL resulted in a multi-bagger return. The firm likely exited Ideacount through a promoter buyback, which generally leads to less favourable outcomes for investors.

From its second fund, India Alternatives has invested in companies such as GoApptiv, NSE, Kapture, Gynoveda, Brinton, and NSDL. It achieved strong returns when it sold part of its stake in NSDL in 2022, VCCircle reported at the time.

Published by HT Digital Content Services with permission from VC Circle.