Opening Markets

· Market Entry

· India

Turning a strong India portfolio into a focused, scalable growth strategy

A European Development Finance Institution had been investing in India for years across financial services, mobility, and infrastructure. The portfolio had genuine strengths. What it lacked was strategic coherence, local presence, and the linkages needed to convert early-stage grant support into scalable investment. Athaag was engaged to assess the portfolio and build a path forward.

Client

EU-Based Development Finance Institution

Geography

India

Status

Completed

Practice areas

Market Entry DFI Strategy Portfolio AssessmentInvestment Climate

$52M

India portfolio assessed across energy, financial services, and infrastructure

12

investments evaluated across the full portfolio

The Task

Assessing what worked, and designing what comes next.

The EU-based DFI’s India portfolio was delivering real additionality: ESG improvements, governance strengthening, positive signalling effects for portfolio companies. But individual impact without strategic coherence had put constraints on scale. No defined India focus, limited local presence, and grant-supported companies rarely converting into an investment pipeline meant the portfolio was less than the sum of its parts.

The mandate: assess investment performance and additionality across the $52M portfolio, evaluate the effectiveness of grant support for enabling market entry, benchmark against peer DFIs, and develop practical recommendations grounded in how India’s investment landscape actually operates.

The Approach

Market-grounded assessment across four steps.

Step 01

Stakeholder consultations

Structured interviews evaluating how effectively early-stage support had enabled market entry, and where the conversion to investment pipeline had broken down.

Step 02

Interviews with grant recipients

Structured interviews evaluating how effectively early-stage support had enabled market entry, and where the conversion to investment pipeline had broken down.

Step 03

Peer DFI benchmarking

Assessment of positioning, strategy, and operating models of peer DFIs active in India, to understand where the client’s approach was differentiated and where it was losing ground.

Step 04

Portfolio analysis

Identification of patterns in sector focus, instrument mix, and scalability across 12 investments, covering financial and non-financial additionality including ESG, governance, and market signalling.

The Analysis

A comprehensive paper with the collective voice of EU industry in India and a roadmap for policy and reform discussions.

Four structural gaps were constraining scale. What was holding the DFI back was a lack of a defined strategy for the Indian market. Grant-supported companies were rarely converting into investment opportunities. With no sustained local presence, the DFI’s ability to get deals and build in-depth relationships was limited. On top of this, fragmentation between funding instruments reduces overall portfolio coherence.
Lack of local presence emerged as the most consequential gap, not just for sourcing deals, but for sustained relationships that enable effective governance and ESG support over time.

The Outcome

From a collection of investments to a coherent India strategy.

India as a priority market

A clear sector focus to move from opportunistic deal selection to a deliberate investment thesis.

Calibrated local presence

A structured approach to building on-the-ground relationships essential for deal sourcing, portfolio management, and non-financial additionality at scale.

Grant-to-investment pipeline linkages

A framework to strengthen the conversion pathway from grant-supported early-stage companies into bankable investment opportunities.

Expanded product flexibility

Moving beyond debt instruments to match the full range of investment opportunities in the Indian market.

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