Chiratae Ventures announces maiden growth fund capital pool of Rs 759 crore | The Financial Express

Chiratae Ventures announces maiden growth fund capital pool of Rs 759 crore

The firm plans to back about 15 companies over the course of the fund and said it will invest about $5-$15 million (around Rs 40-120 crore) in each startup that it backs. It plans to invest in new-age companies building in spaces like healthcare, agritech, gaming, fintech, software-as-a-service (SaaS), among others.

Chiratae Ventures announces maiden growth fund capital pool of Rs 759 crore
The firm plans to back about 15 companies over the course of the fund and said it will invest about $5-$15 million (around Rs 40-120 crore) in each startup that it backs. (Representational image)

Chiratae Ventures, an early-stage venture capital (VC) firm, has said it will expand its reach and begin backing even growth-stage startups and has raised Rs 759 crore for its first growth fund.

Further, the Chiratae growth fund one (CGF 1) will see another Rs 750 crore come in by the end of December — its green shoe option — which will mark the close of its maiden capital pool for Series C and Series D companies at about Rs 1,500 crore. The firm says it is likely that the fund will be oversubscribed by about 30%.

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The firm plans to back about 15 companies over the course of the fund and said it will invest about $5-15 million (around Rs 40-120 crore) in each startup that it backs. It plans to invest in new-age companies building in spaces like healthcare, agritech, gaming, fintech, and software-as-a-service (SaaS), among others.

“Despite the macro sentiment being fairly weak, we’ve been able to raise funds in about three months,” Ranjith Menon, managing director, Chiratae Ventures, said.

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“We’ll focus on companies that are leaders in their space. We’re not going to shy away from any sector as long as tech is in focus. Even if its a company from an area not faring too well, we’ll back them as long as their unit economics make sense to us.”

From the total corpus, Chiratae will prioritise backing existing companies but will also make new investments. The CGF 1 currently counts domestic institutional investors such as Kris Gopalakrishnan’s family office, Choksi family office (promoters of Asian Paints), SBI and IIFL Wealth & Asset Management, among other family offices. The limited partners will be a mix of both returning and new investors.

Over the coming years, Chiratae – which backs Lenskart, FirstCry, Myntra and PolicyBazaar among others – eventually aims to become a VC firm that invests in companies across all sectors and stages and the CGF1 is the first step in that direction, Menon said.

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First published on: 08-11-2022 at 11:44 IST