New Delhi, July 7 -- India-focussed private equity firm Lok Capital, which invests in early- to growth-stage, high-impact and technology-enabled businesses, has lined up another overseas development finance institution as a limited partner (LP) for its fifth investment vehicle, VCCircle has learnt.

The firm, which is targeting a corpus of €300 million ($343 million, or Rs 3,265 crore) for the vehicle, has secured a commitment from the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group.

IFC has proposed to invest up to $25 million (Rs 237 crore) in Lok Fund V, according to disclosures reviewed by VCCircle.

The proposed commitment comes months after the European Investment Bank (EIB) agreed to invest up to €75 million in the same vehicle.

Fund V will invest in early- to growth-stage businesses across sectors such as manufacturing, logistics, digital financial services, sustainable agriculture and the circular economy. It will also back small and medium-sized enterprises while promoting themes such as digitalization, climate finance, gender inclusion and stronger governance standards.

Founded in 2006, Lok Capital has steadily expanded the size of its funds over the past two decades. Its maiden fund raised about $22 million, followed by a $65 million second fund in 2011 and a $90 million third fund in 2014.

The firm then launched Fund IV with a target corpus of $150-180 million, broadening its investment strategy beyond financial inclusion to include technology-enabled businesses focussed on productivity and inclusion.

Lok Capital's portfolio includes companies such as MoneyView, Veritas Finance, Aquaconnect, Marut Drones, Lakshmitra Finance, LiveWell, Seeds Fincap and SuperBottoms.

The proposed investment by IFC follows a series of commitments by the multilateral lender to India-focussed private equity and venture capital funds, particularly those supporting financial inclusion, climate resilience and small business development.

In recent years, it has committed capital to funds managed by Gaja Capital, Faering Capital, A91 Partners, Stellaris Venture Partners, Multiples Alternate Asset Management and Baring Private Equity India, among others.

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