Early Stage VC Closes $200 Million Fund for India Startups

Venture capital firm 3one4 Capital has closed a $200 million fund to focus on India’s early-stage technology companies as backing for startups continues unabated in the country despite the somber global investment sentiment.

(Bloomberg) — Venture capital firm 3one4 Capital has closed a $200 million fund to focus on India’s early-stage technology companies as backing for startups continues unabated in the country despite the somber global investment sentiment.

The Bangalore-based firm’s latest fund is its fourth and investors include five of India’s largest banks, eight of the country’s leading mutual fund operators, top US university endowment funds and sovereign funds, the firm said in a release on Monday. 

The fund made its debut at GIFT IFSC, the country’s first international financial center, becoming its first offshore vehicle. Since closing in March, it has already backed or approved five deals.

“We can now continue to direct more meaningful capital to discover the next set of generational tech leaders from India,” said Pranav Pai, partner at 3one4 Capital. The new fund will focus on sectors ranging from consumer internet, fintech, and digitizing enterprises with check sizes of $5 million or less. The fund is bullish on India consumption patterns and intends to strengthen its portfolio in India-specific businesses.

“As India’s economic growth continues to accelerate, we are seeing more and more top-tier capital entering the mid and late stages of the tech ecosystem,” said Nruthya Madappa, a partner at 3one4 Capital. The VC manages over $510 million of committed capital and a portfolio of 80 companies, including Licious, Darwinbox and Tracxn.

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