New Delhi, April 14 -- Singapore-based impact investment firm ABC Impact, whose Indian portfolio includes edtech unicorn Vedantu, healthcare chain DCDC Kidney Care, and IPO-bound finance company Aye Finance, has closed its second fund, raising over $600 million (Rs 5,164 crore) from limited partners (LPs).

ABC Impact, an Asia-focused impact investor and an arm of Temasek Holdings' global asset management unit, received capital commitments from Temasek and its related entities--Temasek Trust, Mapletree Investments, and SeaTown Holdings--as well as the Asian Development Bank (ADB), a Southeast Asia sovereign wealth fund, a US-based family office, and several ultra-high-net-worth individuals, the firm said in a statement.

Launched in August 2023, the fund marked its first close in January 2024.

ABC Impact has raised double the corpus for its second fund compared to its inaugural fund, which secured nearly $300 million in commitments in 2019.

The first fund invested in 11 companies, including out-of-hospital care provider Health Care At Home India, agritech firm Cropin, and Chinese financial services company Chongho Bridge. In 2022, the firm exited its investment in a Singapore-based solar energy company.

"In a rapidly changing world, we are facing increasingly complex and far-reaching social and environmental challenges. Our partnership with ABC Impact is a core pillar of Temasek's impact investing strategy, reflecting our belief that impact investing can scale capital to address the pressing issues we are facing," said Benoit Valentin, head, impact investing at Temasek.

Similar to the first fund, ABC Impact's second fund will focus on addressing environmental and social challenges in Asia, with investments across four core sectors: climate and water solutions, financial and digital inclusion, healthcare and education, and sustainable food and agriculture.

"We believe capital, when directed with intent, can help shape pragmatic, market-led responses to the most urgent challenges facing our region," said David Heng, CEO of ABC Impact. "From climate resilience to inclusive finance and healthcare access, investing in these areas is both a societal imperative and a long-term business opportunity."

Published by HT Digital Content Services with permission from VC Circle.