- APIDC VC: APIDC VC is a joint venture between Dynam Ventureast Private Ltd with a 51% stake and APIDC (Andhra Pradesh Industrial Development Corporation Limited) with the remaining 49%. - The Manager: The core team of the VenturEast Fund Advisors consists of Mssrs. Sarath Naru, Raghu Mendu, and Siddharta Das, the shareholders of Dynam Ventureast Private Ltd. Mr.Naru has experience as an entrepreneur as well as in the corporate world. Mr. Mendu, has extensive experience in start ups and Mr. Das in venture capital and research/development.

The total fund size is $100 million. IFC is proposing an equity investment of $15 million, not to exceed 15% of total commitment of the fund.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

The Fund will invest in the SME sector in India with a focus on information, communication and technology. The Manager of the Fund is located in Hyderabad, India. The Fund is a Mauritius legal entity which will invest in the United Domestic Fund, a fund structured under the Indian Trust Act.

The project is expected to impact development in the following areas: - Generating employment: By being actively involved in the growth of the investee companies, the Manager will channel the fund towards the creation of new jobs, the preservation of existing jobs and to the development of increased labor productivity. - Developing the private sector: The Fund will invest in sustainable companies in the private sector and lead to further development of the private sector in the technology, communication and information space. - Supporting SMEs: The Fund has a mandate to invest in small to medium sized businesses and generate revenue from the value addition they provide to these companies.

The IFC will contribute on: - Fund structuring: IFC’s expertise in fund structuring will help the Manager structure the Fund along international best practice, focusing in particular on governance and fund economics to better align interests of the Manager with investors. - Catalytic role: IFC will add credibility to the Manager and increase its chances of broadening the present small investor base by raising capital from international institutional investors. - Co-investment opportunities: IFC’s participation in the Fund may allow the Fund to support a greater range of companies through co-investments expanding the capital effectively available to the Fund. - Governance of the Fund: IFC will play a lead role through active participation in the Fund’s governance structure and will seek representation on its Board and Advisory Committee - Institution-Building: IFC will support the development of local private equity by helping a successful local private equity team grow and expand according to international norms and practices. IFC will also be involved in setting reporting standards at the Fund.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:

- The IFC FI Exclusion List; and/or
- The applicable National Environmental and Social Laws and regulations; and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of the fund to manage social and environmental risks and to establish and maintain a Social and Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.

The Manager will be required to:

- Develop or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC.
- Identify responsible, qualified persons to manage and implement the SEMS.
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements.
- Take action to remedy any gaps in SEMS implementation on an ongoing basis.
- Submit a periodic report to IFC as per a format to be provided by IFC.