New Delhi, Oct. 22 -- India Quotient, a Bengaluru-based early-stage venture capital firm, has made the final close of its fifth fund at $129 million (around Rs 1,132 crore), marking its largest fundraise to date.
The new fund aims to support innovative Indian startups addressing unique challenges in the domestic market, the firm said Wednesday.
As part of its growth strategy, India Quotient recently promoted Kanika Agarrwal and Sahil Makkar to the position of partner. They will join existing partners Anand Lunia, Madhukar Sinha, and Gagan Goyal in leading the firm's investment efforts.
The firm continues to focus on early-stage investments in sectors such as social media, direct-to-consumer brands, fintech, agritech, and software solutions tailored for the Indian market.
India Quotient has previously backed companies such as ShareChat, Sugar Cosmetics, Lendingkart, Kuku FM, and Vyapar.
The VC firm said that for this fund, nearly 80% of the capital commitments have come from global limited partners, indicating a shift from the firm's previous funds, which were predominantly backed by domestic investors.
With the closing of Fund 5, India Quotient plans to continue identifying and nurturing early-stage startups that have the potential to become significant players in the Indian market, according to the firm.
India Quotient had raised $109 million for its fourth investment fund, and $60 million for its third fund.
It was also planning to launch its second opportunities fund, which it says allows it to double down on its winners and generate 25-30% IRR with very low mortality.
The VC firm had invested in companies such as marketing automation platform WebEngage, lending platforms Lendingkart and LoanTap, edtech platform Masai, and D2C brands such as FabAlley, Giva and Sugar Cosmetics. It typically gives out the first cheque for a startup backing them with funds in the range of $250,000-$1.25 million.
Published by HT Digital Content Services with permission from VC Circle.