IvyCap Ventures, one of the more prominent VC firms from India having backed the likes of Purplle, Clovia, Bluestone among others, has announced first close of its incoming third fund. The total target corpus for the fund is ₹2000 crore (~$270Mn), of which nearly ₹1608 crore (~$215Mn) has been closed. Nearly all of its previous limited partners contributed in this third fund, with several new investor categories also pooling in.
Apart from its existing LPs, new institutional investors including banks, insurance companies and the government departments also invested in the fund. The fund also raised capital from many family offices for the first time, it noted without disclosing their identities.
IvyCap, which initially invested largely in D2C companies, has off late broadened its investment horizon to include tech companies as well. And the same investment philosophy will be carried forward in its third fund. The new fund will continue to focus on sectors such as consumer tech, deep tech, healthtech, fintech, software as a service (SaaS) and edtech.
Ticket sizes would largely remain the same. IvyCap would look to make initial investments in the ₹30-40 crore range, in around 20-30 companies at their Series A stage. It will also reserve 20% of the new fund to co-invest in its existing portfolio firms from the second fund.
IvyCap, which relies heavily on generating capital through some of India’s strongest alumni networks, first launched in 2014 with a ₹240 crore fund. It made 10 investments from the same. Its second fund of ₹535 crore was launched in 2020 and it invested in 23 companies with the same.