International Finance Corporation: the World Bank Group's private-sector engine for emerging markets

The International Finance Corporation (IFC) is the member of the World Bank Group that backs private enterprise in emerging markets. It describes itself as the largest global development institution focused on the private sector in emerging markets, working in more than 100 countries with a mix of investment, advisory and asset-management offerings that can be tailored to a client's specific needs. With 70 years of experience unlocking private investment and creating markets where they are needed most, it is a heavyweight most founders have heard of — and one that is increasingly active in India's venture and growth capital scene.

What IFC does

IFC's mission is to use the power of the private sector to end extreme poverty and boost shared prosperity on a livable planet. It invests across the sectors that matter most for developing economies: agribusiness, financial markets, manufacturing and services, health and education, information and communication technologies, infrastructure, and private equity and investment funds. In fiscal year 2025, it committed a record $71.7 billion to private companies and financial institutions in developing countries, mobilising private capital alongside its own balance sheet.

India is now IFC's largest market

India has become IFC's largest global portfolio, at about $10.6 billion, with annual commitments to the country quadrupling to approximately $5.4 billion in FY25. For founders, the most relevant number is this: IFC's private equity and venture capital commitments in India crossed USD 1 billion in FY25 — an increase of about 400 per cent over three years. Its portfolio now covers 70 PE–VC funds and co-investments, including managers such as Everstone, Motilal Oswal, L Catterton, Trifecta, Arkam and Alchemy. Eighteen IFC-backed firms in India have already reached unicorn status across e-commerce, logistics, online pharmacy, fintech and health insurance.

That scale matters because IFC invests through cycles — through equity, quasi-equity, private credit and blended finance — and it is explicit about wanting to co-invest, share risk and structure partnerships with fund managers and founders. Its India focus areas now include climate-linked finance, ESG advisory, semiconductors, AI compute and digital public infrastructure such as UPI, Aadhaar and ONDC, which it credits with widening MSME access and strengthening investor confidence.

How founders can engage

IFC does not only write cheques directly; it backs the fund managers who back you. If you are raising from an India-focused PE or VC fund, there is a good chance IFC is an LP or co-investor in it — all of its India private equity investments are gender-tagged, meaning equity outcomes are tracked at both the fund manager and portfolio levels. For startups in climate tech, fintech, health, agribusiness and infrastructure, an IFC-linked fund brings more than capital: it brings the institution's environmental and social performance standards, which open doors with other development finance institutions and global LPs.