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

Germany's DEG, a big name in development finance, has just made its first move into India's debt fund scene. They've put $25 million into Vivriti Asset Management's fund, which is based in GIFT City. This isn't just any fund—it's all about helping small businesses and women entrepreneurs get the loans they need. GIFT City is India's big bet to become a finance hotspot, aiming to compete with places like Dubai and Singapore. DEG's investment is a vote of confidence in this plan. The fund, called Vivriti India Retail Assets Fund, is the first of its kind in GIFT City. It bundles up loans and sells them as bonds, which is a smart way to get money flowing to those who need it most.With DEG on board, the fund is now close to hitting its $250 million goal. Other big players like M&G Catalyst, the International Finance Corporation, and British International Investment are also part of this. The fund has a 10-year plan, and it can recycle its money multiple times. This means it could potentially pump out up to $1 billion over the decade. DEG isn't new to India. They've been backing private equity funds and making direct investments here for a while. But this is their first dip into the debt fund pool. The fund has already made a splash, investing $285 million across 72 deals by December 2025. It's a big step towards making finance more accessible for small businesses and women entrepreneurs in India.