DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is Germany's development finance institution: a wholly KfW-owned subsidiary whose mandate is to finance private-sector companies in developing and emerging-market countries. Founded in Cologne in September 1962, it is headquartered there, employs roughly 730 people (2025), and operates representative offices in some 17 cities, including New Delhi. It has been active in India since 1964 — one of the longest-running foreign DFI presences in the country.
DEG invests across the capital structure: long-term loans, direct equity, mezzanine, fund investments and advisory support, with lending tenors stretching up to 21 years. Its global portfolio is worth around €11.7–12 billion across nearly 80 countries, while parent KfW's balance sheet was €550 billion as of December 2024. In 2025 it deployed €2.9 billion of business volume, mostly from its own funds.
India is now one of DEG's top-three investment destinations globally. The India book stands at roughly €540 million in equity and debt — about 5% of the global portfolio — spread across about 50 companies, with a stated target of reaching €900 million (about $1.07 billion) in 3–4 years. It plans to rebalance new commitments from today's roughly 65% equity / 35% debt mix to an even split. One limitation: DEG cannot currently provide rupee-denominated debt, so its lending targets Indian firms raising offshore or dollar debt. The average Indian ticket has been €25 million, with openness to €50–75 million syndicated deals. Return targets: high-teen equity returns, 11–13% in euro terms for mezzanine, and 2–3% over SOFR for debt.
Its preferred sectors in India are infrastructure, renewable energy, financial institutions (primarily NBFCs), manufacturing and agriculture. Notable Indian portfolio bets include Fourth Partner Energy, where DEG invested $50 million in equity alongside IFC and ADB in a $275 million round for the Hyderabad-based renewable energy platform targeting 3.5 GW of assets; Vivriti India Retail Assets Fund, where DEG made a $25 million commitment — its first-ever investment in an Indian debt fund, backing micro and small enterprises and women entrepreneurs from GIFT City; LivFin India, a $5 million equity bet on the SME-focused fintech and DEG's first India fintech investment; and growth capital for MAS Financial Services, advised by Avendus Capital.
Leadership in India is led by Kunal Makkar, DEG Director–India, who has publicly laid out the €900 million ambition. Management board member Monika Beck is a frequently quoted spokesperson on DEG's development-impact agenda; Wikipedia lists Roland Siller as CEO alongside Beck and Philipp Kreutz on the board.
For founders, the most accessible on-ramp is DEG's promotional toolkit. develoPPP Classic runs idea competitions four times a year for established companies expanding into emerging markets, covering up to 50% of project costs with grants of up to €2 million; develoPPP Ventures, aimed at young startups, offers matching grants of up to €100,000. DEG also promotes Upscaling for innovative SMEs and is a member of 2X Global, with applicants meeting gender-lens criteria especially encouraged.
Why it matters for founders
DEG is patient, long-tenor capital that behaves more like a strategic partner than a fund chasing exits — exactly the kind of money that suits infrastructure, energy and financial-services build-outs. With its India book set to nearly double, a mandate that spans debt, mezzanine and equity, and an explicit openness to €50–75 million syndicated deals, founders in renewables, NBFCs and manufacturing have a rare window to put a €12 billion DFI on their cap table. Come with ESG credentials and development impact in your pitch — those are hard requirements, not nice-to-haves.