Z3Partners, a venture capital fund focused on India’s tech startups, on Tuesday marked the final close of its Z3Partners Tech Fund at Rs 550 crore ($67.2 million).
The firm has raised funds from investors including domestic and global institutions and family offices. These include Europe-based Orient growth fund, Bikbergen Sàrl Family office, US-based Storm Ventures, Kenya-based SVG group. In India, the company raised funds from ACME Family office, Narotam Sekhsaria Family Office (NSFO), Parle Family office, HDFC Life and Small Industries Development Bank of India, among others.
The fund, launched in 2019, announced its first close in January 2021.
So far, it has already invested in five startups including social e-commerce unicorn DealShare, cybersecurity firm Cyfirma, agritech platform Gramophone, logistics management startup Shipsy and celebrity engagement platform True-Fan.
Through the fund, Z3 Partners plan to make about 8-10 investments in early-growth, digital and tech startups, the company said in a statement. The investments will have an average ticket size of Rs 50–80 crore ($6-10 million).
“We invest in early-growth companies that have been around for three-five years and do Rs 2-3 crores of revenue per month,” Gautam Patel, founder and managing partner told VCCircle, adding that startups with good capital efficiency, margins, which are market leaders in their niche, and with large customers are factors that usually drive the investment.
“At Z3Partners, our vision is to identify disruptive and cutting-edge startups and provide them with necessary support to grow into market leaders,” said Gautam Patel, founder and managing partner of the Mumbai-based firm that invests across Series A and B rounds.
Patel previously co-founded early-stage technology investment firm Zodius Capital, which was acquired by Mumbai based financial services firm Avendus Capital in 2017. His prior investments include Bigbasket, MedGenome, OfBusiness, Pepperfry, among others.
The firm also appointed Rishi Maheshwari, who previously worked at White Oak Capital, as co-founder and managing partner.
“In my opinion, India continues to be an attractive investment destination. I am excited and look forward to working with Gautam in building Z3Partners,” said Maheshwari.
Z3Partners marked the first close of the fund at about Rs 103 crore and second close at Rs 250 crore in 2021. The firm works as an investor-operator, working closely with its portfolio companies.
The fund lends support from time to time in helping its portfolio companies with digital and product marketing strategy and developing and retaining senior talent.
It also helps its investee companies with their go-to-market strategy, finding potential customers, digital product marketing and strategy among others.
