Early-stage enterprise capital agency Inflexor Ventures has made the first close of its new Rs 500 crore fund — at Rs 230 crore, one of the most important for a home, know-how-centered investor this yr.
Inflexor Technology Fund, which was arrange by the founders of the erstwhile Paramapara Fund, has introduced on board SBICap Ventures as an anchor investor.
The fund, which additionally has a inexperienced shoe possibility of Rs 200 crore, additionally counts the likes of Sidbi, from its startup-centered fund-of-funds, and Survam Partners, the household workplace of Suman Kant Munjal, as its different key institutional traders.
“We are seeing increased focus on digitisation and technology innovation globally and it’s going to accelerate further, particularly in India in the current environment,” mentioned Jatin Desai, managing associate of Inflexor Ventures. “We want to identify the right technology startups at an early stage and help them scale up in India and sell to global markets and in the process hopefully make some decent returns for our investors.”
Inflexor Technology Fund will primarily look to again startups working within the B2B/Enterprise, AR/VR, Big Data, Robotics, Cybersecurity, Blockchain, IoT, and different sectors that look to leverage know-how, Deep Tech, mental property and innovation.
The fund’s preliminary cheque dimension will vary between Rs 5 crore and Rs 7 crore, with observe-on funding of between Rs 15 crore and Rs 20 crore, ideally coming in pre-Series A to A-plus capital elevating rounds.
“We see a huge opportunity for emerging, new-age Indian technology companies, given the availability of a large young talent pool and the entrepreneurial spirit of founders,” Venkat Vallabhaneni, managing associate, mentioned. “Given our experience as entrepreneurs prior to becoming VCs, we can work closely with the founders at an early-stage and guide them in their formative years,” he added.
Inflexor Ventures’ first close is the most recent by an early stage funding agency in India.
Earlier this week, ET reported that StartupXseed Ventures, a Bengaluru-based funding agency had introduced the first close of its Rs 200 crore fund, whereas 3one4 Capital had additionally launched its third early-stage fund, a $100 million funding car, final week.
Early stage enterprise investments have picked up considerably since July, after a comparatively gradual interval of deal-making within the earlier quarter, a number of traders have informed ET.
The pandemic is throwing up alternatives for new digital companies, prompting extra entrepreneurs to enter the fray.
Deal stream and the quantity of startup concepts a enterprise agency evaluates registered a greater than 50% uptick from the earlier quarter, a number of funding corporations informed ET.
Parampara Fund was backed by IDFC, which was an anchor investor by its alternate asset administration arm IDFC Alternatives.
IDFC has since exited its alternate asset administration entity, having bought that enterprise to Bahrain-based Investcorp in 2019.
Fund-1, a 2015 classic fund, was a Rs 100 crore funding car, which counted the likes of Bellatrix Aerospace, Atomberg Technologies, Entropik Tech, and PlayShifu, in its portfolio, a quantity of which have, since then, gone on to boost development capital.
It claims to have returned an estimated 50% of capital to traders.
The fund made 12 investments and has recorded two exits – S-Cube Futuretech was acquired for an undisclosed sum by US-based mostly Bentley Systems in 2018, whereas it bought half of its stake in Atomberg Technologies in a secondary transaction final yr to A91 Partners, in a $10 million funding spherical.