IvyCap Ventures closes third fund at Rs 2,100 crore to invest in startups; Know the details

Mumbai-based venture capital firm IvyCap Ventures has closed its third funding round, Fund III, raising Rs 2,100 crore. Fund III had a basic corpus of Rs 1,500 crore and a provision to raise an additional Rs 600 crore as a greenshoe option.

According to Vikram Gupta, Founder and Managing Partner at IvyCap Ventures, "Majority of the fund has come from our existing investors and 90% is domestic capital."

Strategic focus and investment plans

IvyCap Ventures plans to strategically deploy this capital over the next 12 years, with a primary focus on investing in about 25 Indian startups at the Series A level. The firm targets investment amounts ranging from Rs 30 to 50 crore per company.

"We are a sector-agnostic fund and have already committed around 40% of the fund. We made fresh investments in seven companies," Gupta explained.

Growth and expansion

This new fund will also allocate 20% of its resources to follow-on investments in existing portfolio startups, supporting them through subsequent growth phases. 

Gupta highlighted the dynamic sectors of interest, including AI, IoT, and machine learning, reflecting the fund's alignment with current technological trends and market demands.

Operational achievements and impact

With the closing of Fund III, IvyCap Ventures' total assets under management (AUM) have surged to Rs 5,000 crore or approximately $600 million. 

Notably, The growth not only solidifies IvyCap's position as a major player in the venture capital space but also enhances its ability to influence significant technological and business innovations in India.

Focused on various sections

Reflecting on the fund's impact and the firm's long-term strategy, Gupta noted, "Despite challenges in domestic capital flow, we have stuck to our theory that there is enough domestic capital which will continue to grow. With Fund III we have proved it."

The firm is poised to drive substantial ecosystem developments, focusing on sectors such as consumer, health, fintech, B2B software-as-a-service, space, and climate tech start-ups.