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Investors commit $90 million in Lok Capital's third fund

The fund has already deployed nearly a third of this capital

Ranju Sarkar  |  New Delhi 

investments, shell firms
Illustration: Binay Sinha

Impact investor has received $90 million in commitment from for its $100-million third fund, which is likely to make a final close in November, said a partner at the firm. 

Lok has already deployed nearly a third of this capital ($25 million to $26 million) since May last year after receiving $60.5 million from investors, said Vishal Mehta, co-founder and partner at the firm. 

It has earmarked another $5 million for follow-on funding in existing investments. had announced the first close for its third fund at $40.5 million in June 2016 but began investing earlier.  

In May, it led a $3.5 million funding in affordable firm Ltd; in April, it invested in $10.23 million in Chennai-based Dr Mohan Diabetes Specialities Care. 

For the first time, is raising money from local investors, who are likely to contribute a quarter of this fund. In the past, 95 per cent of investments came from development financial institutions. 

raised $22 million in its first fund (2006) and $64 million in its second fund (2012). The first fund gave a return of 10 per cent in dollar terms and 15 per cent in rupee terms and was liquidated. 

"We have returned the entire principal of $65 million of the second fund and maybe a little more, to We are clocking about 25 per cent returns in dollars terms,’’ says Mehta. He claims this makes amongst the most successful impact in India.

Aavishkar, a pioneer in this field, has raised five funds and deployed more capital ($250 million-$300 million) in India than  

Backed by IDFC MD & VC Rajiv Lall (Lok was born before IDFC when Lall was leaving PE firm Warburg Pincus), the impact investor has had several exits, which has helped it post good returns.

FUND I: $22 million – 2006
 
Investment Focus: Financial inclusion +one livelihood investment

Investments & status
 
1. Janalakshmi  Financial Services- Exited
2. Asirvad Microfinance -  Exited
3. Spandana Spoorthy – Exited
4. Arohan Microfinance - Exited
5. Bharathiya Samruddhi ( Basix) -  Write Off
6. Satin Creditcare - Exited
7. Suryoday Microfinance - Exited
8. Ujjivan Financial Services - Exited
9. RuralShores - Exited
Fund I of $22 mn has been fully returned to at an IRR of 15% and is liquidated
FUND II: $65million –Jan 2012
 
Investment Focus: Financial inclusion + broader inclusion

Investments & status


1.     Vistaar Financial Services - Exited
2.     Drishti Eye Care – Yet to exit
3.     Everest Edusys - Yet to exit
4.    IFMR Holdings - Exited
5.    MAS Financial Services
6.    Rural Shores - Yet to exit
7.    Hippocampus Learning Centres - Exited
8.    Utkarsh Microfinance - Yet to exit
9.   Aptus Housing Company – Exited
10. Ujjivan Financial Services– Exited
11. Equitas Holdings - Exited
12. SewaGrin - Exited
13. Livewell – Exited
14. SV Agri – Yet to exit
15. Veritas Finance - Yet to exit
 
Fund II of $65 million is tracking gross returns of 25%. The principal amount has been returned to the investors
 
FUND III: $40.5million –June 2016 
 
First Close: Financial Inclusion + Broader Inclusion:

New investments
 
1.  Ummeed Housing Finance
2.  Osam Dairy
3.  Dr. Mohan’s Diabetic Care

Follow-on investments

4. Utkarsh Microfinance
FUND III targeted corpus is $100million expected to have final close by November 2017

First Published: Thu, August 17 2017. 00:48 IST
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