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Kalaari Capital Is Launching A New $290 Million India Fund

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Kalaari Capital, the Bangalore-based VC firm with some heavy and aggressive investments into Indian startups, has announced a new fund of $290 million — making it one of the largest corpus raised by an India-based VC firm. This is the third fund for the firm in nine years (via TOI).

The firm’s last $160 million fund has already been fully deployed in deals across 30 startups. It is also said that the firm has already made few investments from its third fund, one of them being the $9 million into industrial supplies platform, Industrybuying.com

Vani Kola, Managing Director of the VC firm, said,

Though the fund size is bigger, we plan to remain an early-stage fund. While the fund is for five to seven years, we plan to deploy the amount fully in three to four years.

We have exited from some of our earlier investments and our investments have been largely successful. The new fund has been raised from the same institutional investors as our earlier funds.

Kalaari Capital usually invested in the range of $1 million to $2 million from its previous funds. But, as the valuation of startups continues to rise at exponential rates, the firm is now ready to draw cheques ranging between $2 million to $5 million.

With the new fund of $290 million, it is planning to invest in about 30 startups and also participate in new round of follow-up investments within it’s portfolio companies.

The Bangalore-based VC firm focuses on a long-term partnership with entrepreneurs to help unlock large value through disruptive innovation.

Kalaari Capital has $650 million funds under management and has invested in more than 60 startups in India. Earlier this year, Kalaari roped in former Tata Sons chairman Ratan Tata as an adviser.

It’s portfolio companies include startups like Snapdeal, Myntra, Urban Ladder, Zivame, Power2SME and Bluestone. From the third fund, it has invested in YourStory, Holachef, Doormint and Industry Buying.

To invest in Indian startups, many foreign as well as homegrown VC firms have raised money for an India-focused fund. Accel Partners raised $305 million while SAIF Partners raised $350 million. It is also said that Sequoia Capital is looking to raise $800 million for its fifth India-focused fund.


 

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