Filter Capital, the growth stage-focused investment firm set up by former top executives of private equity firms Warburg Pincus and Multiples PE five years ago, Monday said it has marked the final close of its maiden fund.
The fund, Filter Capital India Fund I, secured a total corpus of Rs 800 crore, it said in a statement. This would be 20% less than the target of Rs 1,000 crore that was disclosed earlier when a limited partner (LP) invested in the fund.
In terms of the LP mix, the firm has received 60% of its capital commitments from domestic sources and the remaining 40% from international investors.
Indian institutional investors and family offices such as HDFC Fund of Funds, Small Industries Development Bank of India's fund-of-funds, Self-Reliant India (SRI) Fund, Oister Global, DSP family office, Amansa Capital founder Akash Prakash and Dream11 CEO Harsh Jain are among the LPs who backed the fund.
“Our country has a startup ecosystem and a VC community to support early-stage businesses as well as deep public markets and private equity to support more mature companies. However, there are few investment firms focused on growth-stage companies. This is the opportunity for Filter Capital,” said Nitin Nayar, co-founder and managing partner, of Filter Capital.
Nayar, who previously worked with Warburg Pincus, told VCCircle last year that Filter Capital aimed to hit the fund's final close by the end of 2023.
Filter Capital invests in Series B and Series C funding rounds in growth-stage, technology-led businesses including technology services, software-as-a-service, consumer, business-to-business and fintech domains.
“We seek to partner with entrepreneurs whose businesses have reached an inflection point and are poised for growth. We are attracted to business models with clear product-market fit, competitive differentiation, and good unit economics,” said Sumit Sinha, co-founder and managing partner, Filter Capital. Sinha previously worked with Multiples PE.
The new fund aims to lead or co-lead Series B and C investments. To date, Filter Capital has invested in four companies: Capillary Technologies, an enterprise loyalty SaaS provider; Chalo Mobility, a bus mobility platform; LoadShare Networks, an e-commerce logistics services firm; and THB, an Asia-focused healthcare enterprise SaaS company.
