On February 23, 2022, India-based IvyCap Ventures announced the first close of Fund III at USD 214 million (1608 crore INR). The funds come from institutional investors, including banks, insurance companies and government departments. State Bank of India (SBI), Life Insurance Corporation of India(LIC) and HDFC life participated in the round.
The Fund Size-
IvyCap currently holds assets worth USD 425 million (INR 3200 crore). The fund is eyeing its final close at USD 270 million (INR 2000 crore). However, it may take the size of the fund to USD 331 million (INR 2500 crore). With this fund size, IvyCap will become one of the largest pools of domestic rupee capital.
Existing investors helped to raise Two-third of Fund III.
Utilization of Funds
IvyCap Ventures wants to focus on sectors like Consumertech, Deeptech, Healthtech, Saas, Fintech and Edtech. With the funds, they will invest in Series A rounds. The firm shall deploy INR 30-40 crore for the early-stage startups.
Additionally, Fund III will reserve around 20% of the corpus for co-investing in its existing portfolio from Fund II. Meanwhile, balance funds will be earmarked as a follow-on for the entire portfolio.
What the founders have to say
Vikram Gupta, founder and managing partner of IvyCap Ventures, said, “As we grow in size, our competitive landscape changes substantially. Now we are competing with Sequoia Capital and others. These are funds that come with substantial fund sizes, and you don’t want to lose out on deals only because somebody thinks that others can provide them with a larger follow-on capital.”
He also emphasized their working model via the alumni system of IITs, IIMs and other educational institutions. He said, “We have proven the model of working through the Alumillioni ecosystem of the IITs, IIMs and a few other top educational institutions of India. Our passion lies in building the Endowment ecosystems in India. We had conceptualized the Endowment Fund model through integration with an Alumillioni focused Venture Capital Fund in 2011. Our efforts led to the formation of India’s first Endowment Fund at IIT Delhi that was launched by the Hon. President of India in October 2019. This model was then replicated by IIM Ahmedabad and a few other IITs. Today we see a substantial alumillioni base of 500,000 from IITs and IIMs working very passionately with us.”
About IvyCap Ventures
IvyCap Ventures is an India-based Venture Capitalist Firm. It is guided by an entrepreneur-centric investment approach. They successfully manage a portfolio of 30 companies. Their Fund I investment in 2014 saw a cash return of 22 times return. Whereas Fund II saw a capital of USD 80 million over 23 companies in 2020. IvyCap Ventures backs companies like Purplle, Clovia, BlueStone and Bewkoof.
Vikram Gupta, Ashish Wadhwani, Anju Gupta and Vishal Gauri founded IvyCap Ventures in 2011.
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