Pre-seed investment firm Antler India announces final close of maiden fund at Rs 600Cr

Antler India, a pre-seed investment firm, has raised Rs 500 crore of its targeted Rs 600 crore ($75 million) for its maiden fund and is planning to make the final close this quarter.. 

According to the firm, the fund is dedicated to India and operates independently from the global Antler franchise.

Investment Focus and Strategy

Antler India's fund is designed to support nearly 100 early-stage startups, focusing primarily on the idea to the pre-seed stage. A portion of the fund will also be allocated to reinforce top-performing entities within its portfolio.

The firm has already allocated 20% of the total corpus from its initial fund, investing in 27 startups, including Bold Finance, Covrzy, and Hexo, with 13 of these securing follow-on funding.

The firm plans to continue its investment strategy, contributing between $200,000 and $400,000 in new portfolio companies, focusing on sectors like software-as-a-service, fintech, and generative AI. The firm usually acquires a 10% stake for an initial investment. 

Who participated in the fundraising?

The fund has witnessed substantial participation from domestic capital pools, including the Small Industries Development Bank of India, along with other investors like sovereign entities and healthcare endowments.

"Finally, there is depth in the domestic capital market for essentially the company-formation stage," said Nitin Sharma, co-founder and general partner of Antler India. 

He emphasized the transformative potential of investing in venture capital focused on the very early stages, highlighting the significant impact and returns it can bring.

Antler plans to deploy $20-25 million annually 

Antler India will allocate nearly half of the corpus for new investments, with the remainder focused on follow-on investments.

Some of its Indian portfolio investments are also poised for follow-on investments from Antler Elevate, the global venture capitalist's recent $285 million growth fund. The firm plans to continue deploying $20-25 million annually and anticipates completing the deployment by 2025.

What does Antler India do?

Antler India is a branch of the global Antler franchise, specializing in pre-seed investments. It operates with a cohort-based approach, aiding single founders in connecting with potential co-founders and assisting existing teams with initial products.

The firm is sector-agnostic and aims to reflect the directions in which founders are moving, leveraging global networks to back companies that align with their themes.

In conclusion, Antler India is nearing the final close of its maiden fund, with a focus on supporting early-stage startups and a strategy to be more founder-led, reflecting the evolving needs and directions of the startup ecosystem in India. The firm’s approach and investment focus signify a growing depth in the domestic capital market, aiming to bring transformative changes in various sectors.

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