SaaS and B2B-focused venture capital firm Avataar Venture Partners has announced the launch of its second fund with a corpus of $350 million.
The VC firm has previously backed well-known startups such as ElasticRun, Amagi, Sense, Zenoti, RateGain, Capillary, and CRMNext. With this new fund, The firm expects to support 10-15 companies with an average size of each investment in the range of $35-40 million.
Established in 2019 by Mohan Kumar and Nishant Rao, Avataar previously raised $400 million, which comprises Fund I of $300 million and a $100-million top-up fund.
Avataar Ventures aims to close three new investments from fund II by mid-November and is targeting sectors including healthcare, urban mobility, agritech, deep-tech, blockchain and DevOps.
“This is a great vintage to invest in SaaS—the unrealistic hype in the market is gone, favouring founders with superior execution and profitable business models. In general, we’re proud to see that Indian SaaS companies are able to build global businesses far more efficiently—they spend less than half the amount of money for every dollar of ARR (annual recurring revenue) earned compared to global peers,” Mohan Kumar added.
Avataar said it invests $10 million to $50 million in startups with an ARR of $10 million and above and helps them scale beyond $100 million to $150 million in ARR.