WASHINGTON, D.C., Dec. 1 - The International Finance Corporation (IFC) will invest Indian Rupees 20 million (about US$0.7 million equivalent) in the Information Technology Fund, the first industry-specific venture capital fund in India. India has a competitive advantage in the information technology sector, in both software and hardware. The fund expects to provide equity capital to first-time entrepreneurs and existing enterprises that wish to expand in information technology related businesses. Besides IFC, Indian financial institutions and private sector companies will be investing in the Indian Rupees 100 million (about US$3.2 million equivalent) fund. The Information Technology Fund will be managed by Creditcapital Venture Fund (India) Limited, a leading private sector venture capital company. Creditcapital Venture Fund -- in which IFC is a 10 percent shareholder -- expects to launch several such industry-specific funds in the near future. Mr. Varel Freeman, Director of IFC's Asia Department, said: "IFC
is delighted to be contributing to the development of the venture capital industry in India. By stimulating investment in small and medium-sized information technology projects in the developing world, IFC is fulfilling one of its primary objectives." IFC is the private sector arm of the World Bank Group and the largest source of multilateral financing for private sector projects in developing countries.
