Axis Private Equity invests $15m in urban infrastructure

The Mumbai private equity firm has made its fourth investment from its debut fund to help scale up the operations of Vishwa Infrastructures & Services.

Axis Private Equity, the infrastructure-focused private equity arm of India's Axis Bank, has invested $15 million (€9.5 million) in Vishwa Infrastructures & Services, an urban infrastructure company providing water treatment, water supply and sewage disposal.

It also has a manufacturing plant in Hyderabad that produces pre-stressed concrete, reinforced concrete and mild steel pipes.

Axis said that the company's revenues grew by 80 percent over the last year, and that revenues are expected to hit $250 million in three to four years. The investment will be used by Vishwa to scale up its operations.

Alok Gupta, managing director and chief executive officer of Axis Private Equity, said in a statement that “urban infrastructure in India is in need of urgent upgradation. Availability of water should be one of the key objectives of any government”. He added that a government scheme promoting urban infrastructure “has triggered high growth in the water supply, treatment and sewage disposal area. Vishwa is well-positioned to capitalise on these opportunities”.

The investment was made out of Axis Infrastructure Fund, which is targeting $500 million for its final close. The fund saw a first close on $150 million in April earlier this year and since then, it has invested about $80 million in four companies.

The previous investments transactions include investments in Neesa Leisure, a hotel company; Corrtech International, a provider of infrastructure services related to the oil and gas sector; and Harish Chandra, a rail track maker.

Axis Infrastructure Fund invests in infrastructure and infrastructure enabling companies in sectors including transportation, hospitality, railways, oil and gas pipelines, and water supply.