Mumbai-based Cornerstone Ventures launches second fund worth $200M for B2B tech startups

Cornerstone Ventures, a Mumbai-based venture capital firm focused on B2B enterprise technology, has launched its second investment fund. 

With a target size of $200 million, inclusive of a $50 million green-shoe option, the fund aims to fortify emerging B2B tech startups across software platforms and marketplaces in different sectors, including financial services and insurance, retail, consumer goods and e-commerce, distribution and supply chain, healthcare products and services, and sector-agnostic core technology innovations.

The ticket size would range from $5 million to $15 million.

Building on past successes

Reflecting on the success of Cornerstone Ventures Fund-I, which was launched in 2019 with a size of $50 million, the firm has invested in 21 portfolio companies. These companies, mainly focused on B2B enterprise software-as-a-service (SaaS) models, have seen significant growth. 

For example, Ventures like Credilo, THB, Blubirch, and Dhiway have helped create more than 1,000 direct and 15,000 indirect jobs.

“Our second fund builds on the success of Fund-I, and underscores our commitment to supporting emerging B2B Enterprise Tech opportunities. We aim to back some of the largest value creators in this space of ‘Next Generation Enterprise Technologies’, whether building in India for the world or building exclusively for the domestic market,” said Abhishek Prasad, Managing Partner at Cornerstone Ventures.

Strategic investment focus

The new fund is set to direct its investments towards early- to growth-stage startups that are innovating within software platforms and marketplaces across essential sectors. The firm will target companies that enhance core business processes and possess the potential for multiple revenue streams.

“We particularly like innovations that catalyse core business processes, engage multiple stakeholders across the value chain, thus building multiple revenue streams, and have demonstrable account-level profitability. Such businesses do not require capital for sustenance but really to drive growth,” Prasad added.