- The fresh commitment takes the total fund size of Vivriti India Retail Assets Fund (VIRAF) to USD 190 million.
- VIRAF has deployed USD 285 million, reaching over 730k entrepreneurs in India.
Mumbai/Cologne: January 15, 2026:
Germany’s development finance institution, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH has expanded its commitment in India by approving a USD 25 million senior debt facility for Vivriti Asset Management’s (VAM) Vivriti India Retail Assets Fund (VIRAF). This investment aims to enhance financing for micro and small enterprises (MSEs) and women entrepreneurs across India.
Launched in March 2023 at GIFT City, VIRAF is India’s first asset-backed securitization (ABS) fund, designed to scale investments in small-ticket loans for micro and small enterprises (MSEs) and individuals, with a strong focus on gender inclusion. With DEG’s latest commitment, the fund’s total size has reached USD 190 million, moving it closer to its target corpus of USD 250 million. VIRAF is backed by leading global impact investors including M&G Catalyst, IFC, BII, OeEB, and Calvert Impact Capital.
As of December 2025, VIRAF has cumulatively invested USD 285 million in 72 ABS and bond transactions. These loans have reached over 570,000 individuals and over 160,000 MSME borrowers. Of those, approximately 60 per cent are women. Over a ten-year period, VAM aims to cumulatively invest over USD 1 billion in retail ABS.
“We are pleased to welcome DEG as senior debt provider for VIRAF. Their additional capital will help scale VIRAF further and demonstrate the scalability and resilience of India’s asset backed securitisation market. DEG’s commitment further validates our investment thesis as well as innovative structuring that blends public and private capital to finance Sustainable Development Goals, supporting MSME and gender-led financing for India,” said Vineet Sukumar, Founder and MD, Vivriti Asset Management.
“We are proud to join forces with Vivriti Asset Management through an innovative financing structure. Our commitment to VIRAF reflects DEG’s dedication to expanding access to finance for MSME and women entrepreneurs. By supporting VIRAF’s approach, we aim to help unlock capital for businesses that drive resilience, job creation, and sustainable development across India.”, said Monika Beck, Member of the Management Board and CIO of DEG.
This investment supports UN SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), and SDG 10 (Reduced Inequalities).
India’s 63 million micro, small and medium enterprises (MSMEs) contribute up to 30 percent of the country’s GDP, generate over 40 percent of exports, and create employment for over 100 million people. An IFC study estimates the MSME finance gap in India is USD 342 billion, with MSEs accounting for 95 percent of that gap.
About DEG
For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 11.6 billion, it is one of the largest private-sector development financiers. As an impact and climate investor, DEG accompanies companies addressing transformation and sustainable growth. DEG is a subsidiary of KfW. Learn more: www.deginvest.de
About VAM
Vivriti Asset Management (VAM), founded in 2019, is a performing-credit focused asset manager investing in debt issued by mid-sized enterprises. VAM manages sector-agnostic funds across infrastructure, energy, logistics, financials, SaaS, and services businesses.
Vivriti Asset Management Private Limited (IFSC branch) is registered with the International Financial Services Centres Authority (IFSCA) as a Registered FME (Non-Retail) and the Investment Manager for Vivriti Fixed Income Fund – Series 3 IFSC LLP (trade name of Vivriti India Retail Assets Fund). VIRAF is a restricted non-retail scheme under the IFSCA (Fund Management) Regulations, 2022, with a 10-year tenure.
For more details, visit https://www.vivritiamc.com/
Media Contacts :
Resham Chhabra | Group Head – Marketing & Communications |
[email protected]