Export Development Canada (EDC) has invested CA$7.5mn (US$7.1mn) with The Avigo Group, a private equity firm based in New Delhi in India. The funds will be used to support companies operating in India that have the potential to strategically match the expertise of Canadian exporters in key industries.
Avigo was founded in 2003 in order to invest in high growth small and medium enterprises (SMEs) in the Indian industrial sector. It is completing fundraising for its second fund, the US$125mn Avigo SME Fund II which will be used to target SMEs at different stages of the business life cycle from initial growth, pre-IPO stage and buyouts. Average investment size will range between US$2mn and US$7mn.
“EDC’s first equity transaction in India with Avigo is a natural and important broadening of our market reach there,” says Eric Siegel, president and CEO of EDC. “The small and medium enterprises supporting India’s booming market are developing at a significant rate and EDC must find new ways to help Canadian exporters take advantage of these tremendous opportunities,” he adds.