Asia | July 12, 2024

Suzuki launches $40 million impact fund for Indian social enterprises 

Lucy Ngige
ImpactAlpha Editor

Lucy Ngige

Japanese auto manufacturer Suzuki has launched an India-focused impact fund under its newly formed corporate venture capital arm Next Bharat Ventures. The $40 million fund will invest in venture capital firms and social enterprises in agriculture, mobility, supply chain solutions and financial inclusion, with a particular focus on boosting rural and informal sector incomes.

“There are about 1.4 billion people in India, but we have only reached about 0.4 billion people,” the company said in a statement. “Through this, we will connect with the ‘Next Billion’ people of India, extending beyond mobility and becoming a part of India’s future story.” 

Next Bharat Ventures’ first fund will invest between $120,000 to $480,000 in each deal.

Suzuki joins other Japanese corporations accelerating their impact missions. Examples of recent deals: financial institution Mizuho issued a $1.4 billion green bond last year to invest in renewable energy and other green projects. Auto maker Mitsubishi led a $50 million investment round for Bboxx to provide off-grid solar products in Africa. The Mitsubishi UFJ Financial Group also co-invested $195 million into Thailand’s Ascend Money to strengthen digital lending underbanked individuals and businesses. Sumitomo Corporation, which operates businesses in machinery, energy, financial services and other sectors, invested in Norwegian carbon removal startup Inherit Carbon Solutions

Impact investments by Japanese firms reached 5.9 trillion yen ($37.2 billion) in 2022, up four-fold from the previous year. Most deals by Japanese investors are in debt and public equity.