TLDR:
- Suzuki launches a $40 million impact fund under Next Bharat Ventures for Indian social enterprises.
- The fund will focus on agriculture, mobility, supply chain solutions, and financial inclusion to boost rural and informal sector incomes.
Japanese auto manufacturer Suzuki has announced the launch of a $40 million impact fund for Indian social enterprises through its new corporate venture capital arm Next Bharat Ventures. The fund aims to invest in venture capital firms and social enterprises in sectors such as agriculture, mobility, supply chain solutions, and financial inclusion. Specifically, the fund will focus on improving rural and informal sector incomes in India.
Next Bharat Ventures’ first fund will provide investments ranging from $120,000 to $480,000 per deal, with a particular emphasis on reaching the ‘Next Billion’ people of India. This move aligns with Suzuki’s mission to extend beyond mobility in India and become a significant part of the country’s future development.
The launch of this impact fund by Suzuki mirrors the efforts of other Japanese corporations in accelerating their impact missions. For instance, financial institution Mizuho issued a $1.4 billion green bond to invest in renewable energy projects, while auto maker Mitsubishi led a $50 million investment round for Bboxx to provide off-grid solar products in Africa. Additionally, Japanese firms made impact investments totaling 5.9 trillion yen ($37.2 billion) in 2022, a four-fold increase from the previous year. These investments are predominantly in debt and public equity.
Overall, Suzuki’s $40 million impact fund for Indian social enterprises showcases a growing trend among Japanese corporations to engage in impact investing and contribute to sustainable development goals in emerging markets.
