Infinity Ventures Fund II Zeroes In On Foreign Cos, Plans Large Tranches

New Delhi: | Updated: Apr 25 2002, 05:30am hrs
In a complete shift of focus, Venture Capital firm Infinity Ventures has set its sights on cross-border investments in large tranches (up to $10 million) for its second fund. This is in sharp contrast to the first fund, where all the investments were below $2 million and put only in domestic companies.

Further, Infinity expects to raise at least $30 million in the first round of funding for the second fund by August, this year.

Following the first round, the fund will be open for another six months (till February 2003) for the kitty to reach a level of $75 million.

Fund II is expected to be Mauritius-based so as to allow the company to make investments in companies outside India.

We will definitely close the first round of Fund II wherein we will raise at least $30 million by August. We expect about 15 investors in all for the fund II, Infinity Ventures principal and manager for Fund II Rishi Sahai told eFE.

For its first fund, the company raised about Rs 160 crore where each of the 80 investors pumped in about $1-2 million.

Among other potential investors, we are in talks with Singapore Club which is interested in India and also has a direct investment fund arm, Mr Sahai said.

For its fund II, the company intends to consider foreign companies with at least 70 per cent of their operations and assets in India, according to Mr Sahai.

A VC firm can expect an early exit by investing in foreign companies as compared to investing in domestic companies, he said.

As reported in eFE earlier, VCs like Baring Private Equity Partners (I) Limited, CDC Capital Partners and Chryscapital, claim that they are looking at investing larger doses of funds (upwards of $6 million) as compared to two years ago.