Micro venture capital firm TDV Partners, which focuses on early-stage startups, Thursday said it has launched its second fund with a target size of Rs 50 crore (nearly $6 million).
The Bengaluru-based firm said it aims to support tech startups in pre-seed and seed stages with cheque sizes ranging between Rs 1 crore and Rs 2 crore with the new fund. It plans to deploy capital from the third quarter of the current financial year, making 10-12 investments annually.
TDV said it will invest in business models like platform plays, marketplace and exchange businesses across various consumer tech categories. It claims to be one of the few funds in India focusing on upcoming segments like spiritual tech, fintech, and gaming, believing to be at an "inflection point" to scout early-stage companies in these sectors.
The company added that the fund lifecycle has been kept at five to seven years, half of traditional fund lifecycles that range from 10 years to 12 years.
“We want to back startups with potential of trillion-dollar outcomes as our name reflects our genesis of backing startups. We believe in taking non-consensus bets which is where a fund makes the alpha," said Ujwal Sutaria, founder and general partner at TDV Partners.
Sutaria said TDV's first fund--Fund I MOIC--has provided an exit opportunity within two years of investing in the company and generated over 60% internal rate of return (IRR).
"We are confident of continuing our track record with the new fund as well,” he said.
TDV said the second fund has been receiving commitments from limited partners (LPs) in India as well as from countries such as the US, the UK, the UAE, and Singapore.
Since the firm's founding in 2021, TDV has invested in startups such as prediction market platform TradeX and Singapore-based STAN.