The International Finance Corp, the World Bank’s investment arm, is increasing its capital commitments to India’s private equity market and will support global investors looking to set up India-focused funds, a senior executive said on Tuesday.
Neha Grover, regional lead for South Asia Funds Group at IFC, said fresh capital has already been allocated to one India-dedicated investment vehicle backed by a global investor, while a second such investment is in the process of closing. She did not disclose the names of the funds.
Speaking at the IVCA Buyouts Summit in Mumbai, Grover said IFC aims to strengthen the investment ecosystem by encouraging more global fund managers to establish India-specific funds. She added that this approach would help increase the flow of high-quality global capital into the country.
Grover said IFC’s fund investment activity in India has expanded significantly in recent years. About six years ago, the institution typically made one or two fund investments annually. That number has since risen to an average of three to five investments each year, reflecting growing confidence in India’s private equity landscape.
According to a disclosure dated May 23, IFC invested $30 million last year in L Catterton’s $600 million India-dedicated fund and also earmarked an additional $30 million for co-investments. IFC is also investing in Carlyle Group Inc.’s first $300 million India side fund, Bloomberg reported in November 2025.