Bengaluru-based VC Prime Venture Partners has successfully closed its fifth fund, securing a total of $100 million to continue backing early-stage startups across key sectors such as fintech, AI, and fintech.
The latest fundraise comes nearly three years after the firm closed its fourth fund, which was initially sized at $100 million but later expanded to $120 million due to high investor interest. This comes at a time when investors in both US and Europe have shown growing interest in India’s venture capital market.
Prime Venture Partners has secured approximately 80% of the total $100 million fund from multiple investors, including global family offices, university endowments, fund-of-funds, and trusts from the US, Europe, Singapore, and the Gulf region.
The proceeds from the latest round of funding will be deployed towards fintech startups, especially since Prime Venture Partners continues to focus on financial services infrastructure, digital lending, insurance, and wealth management. Funds will also be deployed towards supporting startups that provide AI-driven services, Software as a Service (SaaS), and businesses focused on digitizing the Indian economy.
Beyond fintech, the firm is looking to invest in data privacy solutions and regulatory technology (RegTech) platforms, as well as invest in 16 to 18 startups over the next four to five years. Initial funding rounds will range from $2 million to $4 million per startup, with provisions for follow-on investments of up to $12 million for high-performing companies.
Sanjay Swamy, co-founder and managing partner at Prime Venture Partners, stated that the firm is “actively investing from our fourth fund, and the deployment of the latest fund will begin in the second half of this year.”
Since its inception, Prime Venture Partners has deployed around $200 million into Indian startups. The firm has achieved successful exits from several portfolio companies, including data collection platform Tracxn, Stripe-owned Recko, Razorpay-owned Ezetap, and more. Since it’s inception, Prime Venture Partners has gradually shifted from investing primarily at the seed stage to participating in pre-Series A rounds.
For now, Prime Venture Partners is expected to complete the deployment of its fourth fund by mid-2025, as mentioned earlier, after which investments from the newly raised fifth fund will begin. Startups funded under its previous round include FinAG, Hitwicket, Ocean, Navdan, and Metafin, among others. The firm has also backed emerging platforms such as TheBox, a WhatsApp-based small business tool, and Alchemy, a B2B cross-border chemicals marketplace.
It’s future focus, according to the looks of it, will be on early-stage investments while the VC firm will also selectively support growth-stage startups with additional funding rounds.
