Venture capital firm Asha Ventures has secured a $10 million commitment from British International Investment (BII), UK’s development finance institution and impact investor, for its debut fund. 

The investment marks a significant milestone as Asha Ventures Fund I moves closer to its target corpus of $91 million, reinforcing its mission to back high-growth, impact-focused early-to-growth stage businesses across India with a focus on financial inclusion, job creation, and climate resilience, the firm said in its statement.

Asha Ventures is committed to advancing women’s economic empowerment, ensuring that at least 30% of its portfolio companies meet one or more of the 2X Challenge criteria—a global framework that encourages gender-lens investing by supporting women-led businesses, female employment, and gender-inclusive products and services.

“We are delighted to work with impact-aligned fund managers like Asha. The collaboration allows us to extend our reach to small businesses, women entrepreneurs and communities, facing challenges of financial access and climate impacts. Through Asha, we can in addition channel catalytic capital into creative solutions and impactful businesses that contribute to a more inclusive and sustainable world,” said Srini Nagarajan, managing director and head of Asia, BII.    

Asha Ventures Fund I has already invested in Ascend Capital, a lender focused on financing electric vehicles; TrueMeds, a generics-focused e-pharmacy; and AutoMony, a used commercial vehicle financier providing critical credit access to India’s small business owners and logistics entrepreneurs.

Asha Ventures Fund I announced its $46 million first close in December 2023, backed by prominent institutional investors including Small Industries Development Bank of India(SIDBI), Self Reliant India (SRI) Fund, National Bank for Agriculture and Rural Development (NABARD), and leading family offices.