Germany's DEG Puts Money into India's GIFT City Debt Fund

Germany's DEG, a prominent player in development finance, has made its first foray into India's debt fund market. The organization has invested $25 million into Vivriti Asset Management's fund, based in GIFT City. This fund is specifically designed to support small businesses and women entrepreneurs by providing them with much-needed loans.

GIFT City: India's Finance Hub in the Making

GIFT City is India's ambitious project to establish itself as a global finance hub, competing with international centers like Dubai and Singapore. DEG's investment signals strong confidence in this vision. The fund, named the Vivriti India Retail Assets Fund, is the first of its kind in GIFT City. It operates by bundling loans and selling them as bonds, a strategic approach to channel funds to those who need it most.

A $250 Million Goal in Sight

With DEG's backing, the fund is nearing its $250 million target. Other major investors, including M&G Catalyst, the International Finance Corporation, and British International Investment, are also part of this initiative. The fund operates on a 10-year plan, with the ability to recycle its capital multiple times. This structure could potentially generate up to $1 billion over the decade.

DEG's Expanding Footprint in India

DEG is no stranger to India, having previously supported private equity funds and made direct investments in the country. However, this marks its first venture into debt funds. The fund has already made significant progress, investing $285 million across 72 deals by December 2025. This move is a major step toward making finance more accessible for small businesses and women entrepreneurs in India.