The fund will be the impact investor's second overseas-focused fund - the first is a $75 million fund it is currently raising.
According to a Mint report, Aavishkaar CEO Vineet Rai said the firm will kick off its fund-raising sometime in the middle of 2017 with the round closing out in 2018.
“We are looking to raise between $100 million and $150 million for the African fund. We will start the fund-raising around the middle of 2017 and we expect to close it in 2018,” he said, according to the report.
The fund will be the impact investor's second overseas-focused fund - the first is a $75 million fund it is currently raising to fund investments in South and South East Asia.
Rai says the African fund will focus on low-income groups, particularly sectors such as agricultur, financial inclusion, energy, education, and healthcare.
“The focus will be on making commercial returns while making a significant impact and we will use the sow-tend-reap strategy of multiple round investing and will be an early investor,” he said.
Aavishkaar will be looking at opportunities in Kenya, Tanzania, Rwanda, Nigeria, and Ghana.