Early-stage consumer-focused venture capital fund Fireside Ventures has announced the final close of its third fund at $225 million (Rs 1,830 crore), the firm announced on Wednesday.
VCCircle reported the development of a third fund in April.
Fireside Fund III will invest in 25-30 startups that adhere to its thesis of digital-first consumer brands. It will focus on health and wellness, edutainment, lifestyle and FMCG (fast-moving consumer goods).
In addition to products offering personalized customer experiences using data analytics-based value propositions, Fund III will be seeking out brands with a strong purpose, responsible practices and healthy governance, the firm said in a statement.
The third fund is anchored by new and existing Indian and global investors which include, Self-Reliant India Fund, Investment Corporation of Dubai, SBI, Premji Invest, Waterfield-Fund of Funds, ITC Limited, Emami Limited, Sharrp Ventures, and startup founders.
Interestingly, the firm said 50% of which have been founded or co-founded by women. The fund has been the first institutional investor in 75% of its 31 portfolio companies, one of which is a unicorn, and another is IPO-bound.
The cumulative value of portfolio companies stands at $3 billion across three funds, the firm noted.
The firm said it is expecting the market for direct-to-consumer brands is set to touch $100 billion by 2025. The pandemic, ecommerce penetration and focus on health wellness will accelerate development. It expects new-age players to compete with legacy brands in key categories like beauty and personal care, food and beverages and fashion.
“At the stage at which we invest (which is seed, Series A), we have not seen too much froth/volatility in valuations and they continue to be in a range, we see the valuations persisting at similar levels,” said Kanwaljit Singh, Managing Partner, Fireside Ventures.
Fireside was founded in 2017 by Kanwaljit Singh, who earlier co-founded venture capital firm Helion Venture Partners where he primarily managed investments in consumer companies.
Fireside Funds I and II have invested in companies like personal care unicorn, Mamaearth, and IPO-bound boAt, as well as fast-growing businesses that are now household names like Slurrp Farm, Kapiva, 91 Cycles, Design Café, FS Life (erstwhile FableStreet), The Sleep Company, Gynoveda, Wellbeing Nutrition and Pilgrim. Fireside has invested across segments, including personal care, processed foods, lifestyle and home products over the years.
The venture capital firm hit the final close of its debut fund at $52 million in March 2018.