Shortly after financing Grameen Impact with USD5mn for lending small and medium enterprises, the US funding arm OPIC has committed USD125 mn to support growth capital to mid-size Indian firms in the healthcare, energy, technology, agriculture, and service sectors.
Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, represented by Counsellor to the President Frank Dunlevy signed the agreement with Ketal Patel, the Founder and CEO of Greater Pacific Capital (GPC) yesterday in London.
Access to risk capital remains limited for small- and medium-sized enterprises in India, restricting their ability to grow, hire, and contribute to overall economic growth. OPIC will contribute to a USD700 million fund established by GPC to expand access to financing for growing companies in India operating in the healthcare, energy, technology, agricultural, and service sectors.
By providing greater access to expansion capital, the OPIC-supported fund will help narrow the capital shortage that entrepreneurs and business owners face across India.
"Despite rapid growth in India’s financial services industry, small- and medium-sized business owners continue to face a shortage of financing options," said OPIC President and Chief Executive Officer Ray W. Washburne.
"By responding to unmet demands for capital, this fund will help promising Indian companies reach their full potential, fueling economic growth and development throughout the country.”
“GPC is delighted to have the strong support of OPIC and appreciates its role in backing investments in the exciting opportunity presented by India’s rise at such an important time for the region and the world,” said GPC Founder and Chief Executive Officer Ketan Patel.
GPC, an investing institution established in 2005, focuses on providing capital to Indian companies with international growth ambitions. The firm’s investment strategy focuses on investing in high growth businesses mainly in the healthcare, technology and services sectors. Since its inception, the firm has helped mobilise and invest over USD1 billion of capital to high-growth companies in these core sectors of the Indian economy.
The Overseas Private Investment Corporation is a self-sustaining US Government agency that helps American businesses invest in emerging markets.
OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances US foreign policy and national security priorities.
It helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.
While all OPIC projects must adhere to best international practices and it cannot cause job loss in the United States.