Aavishkaar Capital raises $40m to expand credit for SMEs

By Vriti Gothi

Aavishkaar Capital has raised $40 million from the Japan International Cooperation Agency (JICA) into its Global Supply Chain Support Fund (GSCF). The investment marks a significant milestone in advancing inclusive finance and accelerating sustainable growth across emerging markets in Asia and Africa.

The announcement was made during Japanese Prime Minister Shigeru Ishiba’s address at the Economic Partnership in Indian Ocean Africa Forum, held alongside the Tokyo International Conference on African Development (TICAD 9) in Yokohama.

Managed by Mumbai-headquartered Aavishkaar Capital, the impact investment arm of the Aavishkaar Group, the GSCF is designed to strengthen global supply chains by providing non-dilutive, customised capital solutions to emerging corporates. The Fund, established in partnership with Germany’s development bank KfW, focuses on businesses across agriculture, food processing, and manufacturing sectors that are not only central to international trade but also vital in creating climate resilience, livelihoods, and community empowerment. With eight investments already deployed across Asia and Africa, the Fund is strategically positioned to unlock long-term value in frontier markets.

JICA’s investment will accelerate the Fund’s expansion beyond India into the wider Indian Ocean region, enabling Aavishkaar Capital to extend credit to small and medium-sized enterprises (SMEs) that demonstrate both global competitiveness and measurable social and environmental impact. By reinforcing critical supply chains, the initiative aims to foster inclusive growth, climate action, and sustainable prosperity across emerging markets.

Mikio Hataeda, Senior Vice President of JICA, said, “We are honoured to invest in the Aavishkaar Fund, with which JICA has a long-standing relationship and has achieved significant impact in India. By investing in the fund and entering a new chapter of collaboration with the Aavishkaar Group, we hope to elevate the well-established India-Japan partnership and further strengthen our commitment to impact investment in Africa and Asia.”

Abhishek Mittal, Partner at Aavishkaar Capital, said, “It is a privilege to partner with JICA as we embark on our Southeast Asia Private Credit journey. We see this as the beginning of a strong, trust-based relationship, built on a shared commitment to nurture the region’s SMEs and support their aspirations for growth and impact.”