IFC Injects USD 60 Million into Motilal Oswal Alternates’ USD 750 Million India Business Excellence Fund V.
Economy Business
In June 2025, the International Finance Corporation (IFC), part of the World Bank Group, committed USD 60 million to Mumbai-based Motilal Oswal Alternates’ fifth private equity fund — the India Business Excellence Fund V — which is targeting USD 750 million, with an additional USD 150 million green-shoe option for expansion.
- The total commitment by IFC includes a USD 60 million co-investment envelope, allowing IFC to participate directly in future deals alongside the fund.
- This co-investment channel strengthens IFC’s role in India’s growing mid-market space, which has shown resilience amid global capital slowdowns. The investment also aligns with IFC’s broader strategy to support high-potential firms in underserved and semi-urban regions.
- The India Business Excellence Fund V aims to invest in 12 to 16 mid-market companies with strong growth potential and scalable business models. Its sector focus includes consumer goods, financial services, life sciences, and manufacturing, especially in tier-2, tier-3 cities and low-income states, boosting job creation and local economic growth.
Main Point :- (i) IFC will not only invest financially but also offer strategic support to enhance women’s participation in the workforce. This includes training, policy support, ESG benchmarking, and inclusive HR practices, aligning with IFC’s commitment to inclusive development in emerging markets.
(ii) This marks IFC’s third investment with Motilal Oswal Alternates—after contributing USD 25 million to its second fund and USD 35 million to the fourth. With this round, IFC’s total investment crosses USD 120 million, reaffirming its confidence in the firm’s performance and governance.
(iii) As of mid-2025, Motilal Oswal Alternates has deployed approximately USD 1.1 billion across 50 companies. Fund V is classified under IFC’s FI-2 risk category, meaning it involves medium environmental and social risk. IFC will implement robust monitoring mechanisms to ensure compliance, particularly in labor practices, environmental safeguards, and occupational health across portfolio companies.
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