SaaS startup fund Upekkha makes first close at $15M of $40M fund

Upekkha, a venture fund and accelerator for early-stage Software-as-a-Service (SaaS) startups, has raised $15 million in the first close of its $40 million Upekkha fund. The round was led by WestBridge Capital, a prominent private equity firm.

Focus on early-stage startups and AI integration

In 2024, Upekkha plans to invest in over 70 early-stage startups, with a particular emphasis on the SaaS and AI sectors. Each startup is expected to receive close to $125,000.

The development comes at a time when investor sentiment leans towards caution, with a renewed focus on unit economics and capital efficiency.

“Indian SaaS, now powered by AI will grow fast and as a result attract greater investment. At Upekkha, we find great founders and help them reach their potential. The investment from WestBridge shows their confidence in India SaaS and gives us more dry power to be the leading accelerator & SaaS fund for early-stage startups building from India to win globally,” said Prasanna Krishnamoorthy, Managing Partner, Upekkha.

The role of WestBridge Capital and other LPs

WestBridge Capital is a late-stage India US crossover investment fund managing over $8 billion of capital to back private and public companies. Over the last 20 years, the firm has invested in more than 160 companies across various geographies.

Sumir Chadha, Co-founder & Managing Partner at WestBridge Capital said, “Prior to Upekkha, India did not have a robust ecosystem and platform that assisted early-stage SaaS entrepreneurs in building strong successful businesses. We continue to see Upekkha as a key partner bridging that gap and enabling founders to build global SaaS business from India.”

Other notable Limited Partners (LPs) in the first close include Godard Abel, CEO of G2.com, one of the largest B2B SaaS marketplaces.

Upekkha's partnership with startups

Founded in 2017 by Prasanna Krishnamoorthy, Maruthavanan, and Shekar Nair, Upekkha has evolved from a pure-play SaaS accelerator to an AI SaaS fund. Over the past six years, it has collaborated with more than 250 Indian B2B SaaS founders. Its portfolio includes companies like API Platform, Almabase, Gimlet.ai, and Labellerr.

The future of SaaS in India

The Indian SaaS market, as per McKinsey estimates, is expected to grow significantly, reaching $50-70 billion by 2030, up from $7 billion in 2022. However, it will still constitute less than 5% of the global SaaS market, projected to expand from $450 billion to $1.3-$1.6 trillion in the same period.

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