Aavishkaar Capital Steers Automotive Industry Towards Sustainability with Investment in Jumps Auto

ESG First Fund Injects $1.45 Million to Fuel Growth and Advance Eco-Conscious Practices

ESG First Fund, a USD 250 million impact investment fund managed by Aavishkaar Capital, has announced its third investment of INR 12 crores (USD 1.45 million) in Jumps Auto Industries (JAI), a leading global manufacturer of automotive components. This strategic partnership aims to fuel JAI’s growth while advancing its Environmental, Social, and Governance (ESG) practices.

ESG First Fund, established in collaboration with KfW, a German state-owned development bank, focuses on empowering businesses in Asia and Africa through investments that generate both competitive financial returns and positive social impact. The fund prioritizes improving ESG standards within supply chains catering to the global market.

Jumps Auto Industries, founded in 1990, boasts a strong international presence, exporting its starter motors, alternators, and dynamo generators to over 50 countries. This investment will enable JAI to:

  • Expand its product portfolio: The company plans to leverage the funding to diversify its offerings, catering to the growing demand for eco-friendly automotive solutions.
  • Strengthen its geographical reach: JAI aims to solidify its position as a key player in new markets, further establishing its global footprint.
  • Bolster its electric vehicle (EV) offerings: With the rising popularity of EVs, JAI will invest in developing and manufacturing components specifically designed for this burgeoning segment.

Sanjay Malhotra, Promoter of Jumps Auto Industries, expressed optimism about the partnership, stating, “This funding from Aavishkaar Capital’s ESG First Fund empowers us to execute our strategic plans and drive multi-fold growth. We are committed to our vision of fostering a sustainable automotive future.”

Monu Jain, Partner-Credit at ESG First Fund, echoed this sentiment, saying, “We are thrilled to support Jumps Auto Industries in its next phase of growth while simultaneously elevating its ESG practices. We believe in empowering businesses through non-dilutive and flexible financial solutions that align with their growth aspirations and contribute to a more sustainable future.”

This investment marks a significant step forward for both ESG First Fund and Jumps Auto Industries. It highlights the growing importance of ESG considerations in the automotive industry and underscores the potential of impact investing to drive positive change at a global scale.