IFC plans to scoop up stake in iLabs

Chennai, Feb 1 | Updated: Feb 2 2006, 05:30am hrs
International Finance Corporation (IFC) is planning to invest $20 million in iLabs Investment Fund II LLC, promoted by Hyderabad-based iLabs Group, an investment management company founded by Srini Raju and Sandeep Reddy.

iLabs, a private equity fund, is planning to raise around $200 million to invest in Indian enterprises or elsewhere in Asia that have substantial Indian oriented business operations.

IFCs proposal is to make an investment of up to $20 million in iLabs a private equity fund with a target size of $200 million.

The Fund will invest in companies, primarily Indian enterprises but also looks for opportunities in South Asia, or elsewhere that have substantial Indian oriented business operations. The Fund will be structured as a 10-year Mauritius Ltd Life Company.

According to IFC, the proposed funding would help to define corporate governance, help developing the private equity sector in India. Besides, IFC will work with the manager to ensure the Funds structure, which is in line with international standards to ensure adequate investor protection.

iLabs group has been involved in funding start-ups, particularly in the field of information technology, biotechnology apart from helping budding technocrats to become entrepreneurs.