Aavishkaar Capital’s Senior Partner Anurag Agrawal says India’s leading impact investor is reshaping its 2026 playbook as inflation steadies, interest rates fall and geopolitical risks rise Aavishkaar Capital is recalibrating its 2026 investment strategy to navigate macroeconomic uncertainties, with inflation, interest rates and geopolitical risks positioned as key drivers of change. “With inflation normalising around 5% in India amid global commodity stabilisation, we prioritise sectors with pricing power, such as sustainable agriculture and essential services, to protect margins,” Senior partner Anurag Agrawal told AsianInvestor. This tilt favours growth-stage companies with proven unit economics over early stage ventures that remain vulnerable to cost volatility. Declining interest rates are also opening new opportunities. “Lower debt costs enable accelerated capex in deep tech and advanced manufacturing sectors,” Agrawal said. “We’re increasing allocations to capital-intensive plays while maintaining conservative leverage ratios to buffer any reversal from global tightening.
Geopolitical tensions—from US-China trade friction to Middle East volatility—pose additional risks by raising input costs and disrupting supply chains.
“We counter this by doubling down on indigenisation aligned tech and domestic manufacturing,” Agrawal said. Overall, he sees these dynamics driving a tilt toward patient domestic LP capital, leveraging India’s 7%+ GDP growth while hedging through investments in stable revenue generators. Aavishkaar Capital, the impact investment arm of the Aavishkaar Group, manages about $500 million across nearly 90 companies spanning financial inclusion, sustainable agriculture, climate mitigation, and essential services such as education and healthcare.
The firm’s investment range stretches from $50–100 million in stable revenue generating firms to $8–15 million in growth-stage businesses and $5–10 million in high-growth smaller ventures, with a focus on equity in early and growth-stage companies across Asia and Africa.
Parent company Aavishkaar Group builds a wider ecosystem through entities including Arohan, Ashv Finance, Intellecap and Sankalp Forum.
The impact investment arm’s alternative investment funds are backed by leading global institutions, including the International Finance Corporation (IFC), British International Investment (formerly CDC Group), Kreditanstalt für Wiederaufbau (KfW) Development Bank, the Dutch Good Growth Fund (DGGF), and Société de Promotion et de Participation pour la Coopération Économique (Proparco), alongside family offices and foundations.
COMMON THREAD
As investment advisor, Aavishkaar Capital sources opportunities, drives portfolio growth and executes strategic exits. Impact remains the common thread across all funds under its management.
Beyond headline risks, Aavishkaar is proactively addressing challenges tied to early and growth-stage investing. “Aavishkaar intends to take its ecosystem approach to Indian deep-tech investing by playing the lead role in building capability of these early-stage companies around human resources, governance, and in preparing to deal with the capital markets once they have scaled,” Agrawal said.
He added, “As a pioneer impact investor with over two decades of experience, we see a critical role in building a thriving deep tech ecosystem that is aware and accountable towards building an inclusive India.”
This year, Aavishkaar will launch its ₹ 2,000 crore ($240 million) Next Gen Fund, designed to scale India’s deep-tech sector by channeling patient capital into strategic areas such as energy security, advanced manufacturing and data infrastructure. Recent investments from its Fund VI include consumer and financial inclusion firms such as Zouk (D2C bags), Go Desi (packaged foods), Altum Credo, Electronica Finance, and Agrostar (agritech), alongside tech-focused ventures like NewTrace (green hydrogen), Vecmocon (EV components) and Work India (a jobs platform for blue-collar workers).
“In the current calendar year, the fund will look to make 3–4 additional investments with a focus on companies that have built a strong tech moat along with a viable and scalable business model in large addressable markets,” Agrawal said.
Read more (Subscription Based) – Aavishkaar Capital bets on India’s edge amid macro uncertainties | Fund Managers | AsianInvestor
