The fund was co-conceptualised by SIDBI and Vivriti with dual objectives of providing necessary debt capital to microenterprises and building bond markets for issuers rated BBB and lower category. The fund is envisaged to benefit over 8,000 microenterprises and 80,000 women entrepreneurs.
The first phase of the fund, PLF-I, with a fund size of Rs 300 crore, commenced operations in March 2022 and was fully invested by October 2022. During this phase, the fund made 18 investments in 16 MFIs/NBFCs and Fintechs rated BBB and lower category. It provided crucial capital to 8,500 microenterprises and supported over 43,000 women entrepreneurs. As of June 2023, the fund has already returned approximately 25% of the capital to its contributors.
The second phase, PLF-II, with a target fund size of INR 400 crore, began its operations in March 2023 and is expected to finalize its closing by December 2023. During this phase, the fund aims to make 20 – 25 investments in MFIs/NBFCs and Fintechs rated below BBB or in the lower category. This will enable the fund to extend financial support to an estimated 4,000 microenterprises and empower 40,000 women entrepreneurs.
“The initiative benefits presently lower rated MFIs/ NBFCs and Fintechs and provides them opportunities to tap debt funds under AIF route,” said S Ramann, Chairman and Managing Director at SIDBI.
“As an asset management firm, we believe that bringing more enterprises to the fore provides capital markets – domestic and global – an opportunity to diversify their portfolios, with an impactful yet commercially rewarding investment,” said Vineet Sukumar, CEO, Vivriti Asset Management.