InnoVen Capital raises Rs 740 crore towards first close of new fund

InnoVen Capital raises Rs 740 crore towards first close of new fund

Mumbai: Venture debt firm InnoVen Capital has raised Rs 740 crore ($100 million) towards the first close of its new fund. The target corpus of the fund is Rs 1,000 crore, with a green shoe option to raise an additional Rs 1,000 crore, the firm said in a release.

The anchor investor for the fund is Innoven Capital Pte Ltd, a joint venture of Seviora (Temasek) and United Overseas Bank, the release said. “While the fund is stage and sector agnostic, the primary focus will be on sectors such as consumer internet, B2B commerce, enterprise software, fintech, healthtech and logistics,” the firm said.

InnoVen has executed over 250 transactions with more than 180 startups. Since 2017, it has disbursed approximately $400 million. According to the firm, its portfolio companies have raised over $20 billion of external capital and are now valued at over $70 billion.

Some of its portfolio companies include Byju’s, Swiggy, Oyo Hotels & Homes, Eruditus, DailyHunt, PharmEasy, Infra.Market, Zetwerk, Moglix, FirstCry, BharatPe, boAT, Licious, Blackbuck, Rebel Foods and OfBusiness.

“India is now home to more than 50 startup unicorns and the third largest venture ecosystem globally. Over the years, we have been fortunate to partner with some of the best founders and startups, including 17 that achieved a unicorn status,” said Ashish Sharma, managing partner at InnoVen Capital.

A venture debt fund invests alongside equity investors in startups, helping them with capital to meet their working capital and other debt needs. In lieu of the debt, these funds get a small equity stake in the company, offering an equity upside to these funds as and when the company’s valuations zoom. Typically, for a venture debt fund, because of the cyclical nature of the capital deployed, a fund can invest more than the total funds they have received.


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“With record fundraising and a vibrant IPO market, we expect a multifold rise in formation of new startups, which will lead to higher demand for venture debt in the future,” said Sameer Mansukhani, partner at InnoVen Capital. “Venture debt is now an integral part of financing rounds and founders have a good appreciation of the product.”

Venture debt investing in India has seen an unprecedented surge in the last five years. Funds such as Alteria Capital, Blacksoil, Stride Ventures, Trifecta Capital and Anicut Capital are among those carving out their meaningful space in the sector. The amount of funding raised through venture debt hit a 25-quarter high in the January to March quarter of 2021.

Also Read:
Venture debt firm Trifecta Capital launches $200 million third fund

According to data from Venture Intelligence, a firm that tracks private firms’ investments, financials, and valuations, venture debt funding raised by Indian companies in the first quarter of the 2021
shot up to $91 million.

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