Venture capital fund IvyCap Ventures on Tuesday announced the closure of its third fund with Rs 2,100 crore corpus from leading Indian institutions, the IIT Alumni Trust, and a few family offices, the fund said in a statement. Nearly 60 per cent of the fund came from IvyCap’s existing investors from first and second funds. The third fund brings IvyCap’s total Assets Under Management (AUM) to Rs 5,000 crore.
The fund said it is looking to invest around 25 startups at Series A with an average starting investment amount of Rs 30 to 50 crores from Fund III. 20 per cent of the new fund will be deployed in the existing portfolio companies of IvyCap Ventures, where the latter will be the co-investor when those companies are raising their next rounds and will not provide secondary funding to their previous funds.
IvyCap has earmarked Rs 100 crore to fund seed-stage startups through a separate team leveraging its IvyCamp platform, collaborating with various partners such as IITs, IIMs, incubation centers, accelerators, corporates, and other platforms.
“Overall, the Fund will focus on high-growth companies across sectors with strong potential, scalable business models, and solid entrepreneurs offering differentiated value propositions,” IvyCap said as investors in the Indian startup ecosystem increase their focus on business fundamentals instead of valuations.
Speaking on the development, Vikram Gupta, Founder and Managing Partner, IvyCap Ventures, said, “We owe this achievement to the trust our investors have bestowed on us across our Funds. We are very fortunate to have an incredible team who have been with IvyCap Ventures along its journey. We are also grateful to our Advisory Board, for their unwavering support since the inception of IvyCap Ventures.”
Currently, around 40 per cent of the corpus has already been invested in startups including Celcius, Agraga, Eggoz, ZestIot, Snitch, GradRight, Flexifyme, Beatoven.ai, and Dhruva Space. Further, the fund has made follow-on investments from its previous fund in LendBox, Miko, Biryani By Kilo, BlueStone, etc.
IvyCap Ventures said it has achieved “significant” cash returns for its limited partners in previous funds. While fund 1 delivered close to a 3X DPI (Distribution of Cash to Paid-in Capital), the second fund saw a 0.4X DPI with most exits occurring through the M&A route.
These included Clovia (Acquired by Reliance), Sokrati (Acquired by Dentsu International), Pharmarack (Acquired by a consortium of pharma companies including Sun Pharma and Cadilla Pharma), and Aujas (Acquired by NSEIT).
Additionally, the first fund had realized a Rs 330 crore exit, with a 22X return on beauty marketplace Purplle.