New Delhi, Aug. 14 -- Mumbai-based growth equity investment firm Filter Capital has started the process to raise its second fund that is likely to be larger than its maiden vehicle, VCCircle has learnt.

The development comes more than two years after the firm, founded in 2018 by former Warburg Pincus executives Nitin Nayar and Sumit Sinha, hit the final close on its first fund after collecting Rs 800 crore ($97 million then).

The second fund could target a corpus of as much as Rs 1,300-1,500 crore ($135-152 million) and could make a first close by the end of 2026, a person aware of the firm's plans said, asking not to be identified.

The person said that the timeline, size and structure of the vehicle are still being firmed up and could change.

A second person, however, said that the firm was unlikely to launch the fund this year and would want to first finish deploying its maiden vehicle.

VCCircle has separately gathered that Filter Capital has received regulatory approval for the new fund.

Filter Capital is likely to stick to a similar investment mandate for the new fund, backing growth-stage technology and tech-enabled businesses across software-as-a-service (SaaS), consumer technology, fintech and business-to-business (B2B) platforms, the people cited above said. The firm may also look to build a portfolio of a similar size to its first fund, they added.

When asked about the fund's potential size and timeline, Filter co-founder and managing partner Nayar declined to comment saying only that VCCircle's information was "factually incorrect" and that the firm would share details when it did have an update.

Debut fund's portfolio

Filter Capital's debut fund has invested in at least a half-dozen companies to date. Its portfolio includes Capillary Technologies, a customer engagement and loyalty SaaS platform that listed on Indian bourses last year; Chalo, a bus-tech and public transit platform; last-mile logistics provider Loadshare; healthcare sales and marketing SaaS firm THB; invoice discounting platform M1xchange; and baby products brand R for Rabbit.

Filter Capital has also recorded at least one full exit from its portfolio, having sold its stake in M1xchange earlier this year, besides making partial exits from some other companies including Capillary.

Growing the team

The plans for a follow-on fund come close on the heels of Filter Capital strengthening its leadership ranks. The firm elevated Zareer Shroff to managing director and Ritika Goyal to principal in January, expanding its senior team as it looks to deepen its India coverage.

Shroff, who joined Filter Capital in 2023 as principal, previously spent close to nine years at Mayfield India and has also worked with GenNext Ventures, the now-defunct venture capital arm of Reliance Industries Ltd. Goyal joined the firm in 2023 as vice-president. She was previously senior director of M&A and strategy at autonomous finance platform HighRadius, and has also worked at Boston Consulting Group, Z47 (formerly Matrix Partners India), the Parthenon Group and Hindustan Unilever Ltd.

The firm has also brought in Reemsha Reen as vice-president of investor relations, bolstering its fundraising and LP-facing capabilities.

Published by HT Digital Content Services with permission from VC Circle.