The Japan International Cooperation Agency has agreed to invest $4 million in a Japanese venture capital fund for allocation to Indian startups engaged in tackling the country's social issues through digital transformation.
The deal between JICA and the fund's operator, Rebright Partners Pte. Ltd., is aimed at providing support to DX-focused startups particularly in the education, healthcare, agriculture, climate change and financial inclusion sectors, JICA said.
Rebright Partners has a track record of managing a number of funds, focused primarily on Southeast Asia and India, and achieving business alliance matching between more than 20 companies in Japan and its investment locations.
JICA hopes to see the accord bear fruit from a financial perspective and through its fresh initiatives for international assistance and cooperation in emerging economies.
"We expect Rebright to achieve both financial returns and an impact on development (of local communities) by selecting promising startups and investing in them," a JICA official told NNA.
India has more than 40,000 startups currently operating and an estimated 470,000 new jobs were created by startups in the past five years. It is expected that DX initiatives led by startups will help solve social issues through new approaches such as telemedicine and smart farming. (NNA/Kyodo)