Homegrown venture capital firm IvyCap Ventures, which has backed startups such as Purplle, Clovia, BlueStone among others, has marked the final close of its third fund at Rs 2,100 crore ($251 million), more than two years after it announced the first close.
Mumbai-based IvyCap’s total assets under management has now gone past Rs 5,000 crore ($600 million).
The fund ‘IvyCap Ventures Trust Fund 3’, launched in 2022, has received commitments from institutions including IIT Alumni Trust, and family offices, with about 60% of capital coming from its limited partners in the first and second funds, the VC firm said in a statement.
“We have always believed in the potential of domestic capital and feel fortunate for the invaluable backing of India's leading institutional investors across all funds,” said Vikram Gupta, founder and managing partner, IvyCap Ventures.
Gupta set up IvyCap Ventures in 2011, building a venture capital model around the global IIT alumni ecosystem with endowment at its core. Its core team also includes Ashish Wadhwani, Vishal Gauri, and Anju Gupta.
IvyCap's first fund of Rs 240 crore was launched in 2014 and it made 10 investments. Its second fund of Rs 535 crore was launched in 2020 and it made 23 bets. IvyCap delivered a 3x DPI (Distribution of Cash to Paid-in Capital) through its first fund, while its second has a 0.4X DPI so far, it said.
The third fund had marked the first close at Rs 1,608 crore ($214 million) in February 2022. At the time, it said the limited partners also included institutional investors such as banks, insurance companies and the government departments.
With the third fund, it intends to build a portfolio of about 25 companies, coming in at Series A with an average cheque size starting at Rs 30 crore. These investments will be in high-growth companies with strong potential, scalable business models, and solid entrepreneurs offering differentiated value propositions. They will be across sectors such as consumertech, healthtech, fintech, edtech, SaaS, enterprise-tech, deep-tech among others.
About 20% of the capital will be reserved for investing in IvyCap’s existing portfolio companies, with the VC firm co-investing during the fundraise. It has allocated a capital of Rs 100 crore to make seed-stage investments through a separate team, relying on its mentorship platform IvyCamp platform.
So far, the firm has already deployed 40% of the corpus in startups such as Celcius, Agraga, Eggoz, ZestIot, Snitch, GradRight, Flexifyme, Beatoven.ai, and Dhruva Space among others and a few follow-on investments in Biryani By Kilo, BlueStone, LendBox, Miko.
