RPSG Capital Ventures, an early-stage venture capital fund for consumer-focused startups has closed its latest Fund II along with exercising the green shoe option to accommodate the higher investor interest which stood at over 150 per cent of the target fund size. The fund, oversubscribed, was closed at around Rs 550 crore, the company announced in a statement on Thursday.
Limited partners for the fund were largely domestic investors including family offices, high net worth individuals and industry veterans from the consumer sector.
Speaking on the fund close, Abhishek Goenka, Managing Partner at RPSG Capital Ventures said, “We’re focused on generating returns for them and remain committed to our investment fundamentals of creating a focused and limited portfolio with strong underwriting filters.”
RPSG Capital Ventures said it typically comes in at Series A rounds writing first cheques of Rs 10 to Rs 40 crores in the “digitally native consumer ecosystem across F&B, beauty, health & wellness, entertainment, lifestyle goods and consumer enabler categories.”
With the new fund, RPSG said it has already led investments into pet care platform Supertails, oral care brand Perfora, and drinkware and foodware brands Rabitat and Headway.
“With this new Fund, we’ll continue to invest into new age consumer businesses that have solid unit economics, differentiated positioning, and strong teams,” said Goenka.
RPSG Capital Ventures has backed 16 startups so far with over 90 per cent success rate in the portfolio including The Souled Store, Supertails, Perfora, mCaffeine, Vedix, SkinKraft, Plix, True Elements and other startups.
Post a harsh funding winter last year, which is expected to subside over the next few months, a number of new VC funds have cropped up this year to back Indian startups with a seemingly revised strategy focusing on path to profitability instead of cash burn.
According to KPMG Venture Pulse Q1 2024 report, from just $1.6 billion in Q4 last year, a low not seen since Q4 2016, VC funding in India rebounded in Q1 2024 with $3.2 billion funding. The deal volume also increased from 313 in Q4’23 to 354 in Q1’24.