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Mumbai-based A91 Partners to raise its largest fund at $700-750 million

ISN Team
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A91 Partners Team

A91 Partners Team

Mumbai-based A91 Partners, an investment firm which has backed startups like Digit General Insurance, Sugar Cosmetics, and Atomberg Technologies, is reportedly raising its largest fund to date, aiming for $700-750 million. 

With this new fund, A91 Partners plans to upscale its investment range to $35-40 million per venture, targeting growth-oriented, capital-efficient businesses across diverse sectors, ET reported. 

Strategic growth and diversified portfolio

Since its inception in 2018 by former Sequoia Capital India executives, A91 Partners has carved a niche in the venture capital landscape, focusing on mid-stage startups in technology, consumer, financial services, and healthcare.

The firm's journey began with a $351 million fund, followed by a $550 million second fund. A91's strategy has led to successful partial exits from investments like Atomberg and spice maker Pushp.

Market dynamics and competitive landscape

The firm's fundraising efforts come at a time when other domestic giants, such as ChrysCapital and Kedaara Capital, are also gearing up to secure substantial funds.

Despite a slowdown in cash distributions from tech-focused venture funds, diversified investment firms like A91 have managed to attract significant attention from global sponsors, thanks to their stable and consistent returns.

Investment philosophy

A91's approach to investment emphasizes backing companies that demonstrate capital efficiency and potential for growth across various sectors. With the anticipated increase in fund size, the firm is poised to enhance its average investment cheques, further solidifying its position in the market.

Notable investments in its portfolio include Digit Insurance, which is expected to go public, and other significant ventures like Sugar Cosmetics and Atomberg Technologies.

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