Summary:
 

  • IvyCap Ventures secures Rs 2100 Crore for its fund III.

  • 90% of the round has been sourced from Indian investors.

  • The Fund aims to support 25 companies at the Series A stage with an average check size of Rs 30-50 Crore.

IvyCap Ventures, a prominent Venture Capital firm, has secured a substantial sum of Rs 2,100 crore for its Fund III, with an overwhelming 90 per cent of the capital sourced from domestic investors. Initially structured with a core corpus of Rs 1,500 crore, the fund included a provision to augment its resources by an additional Rs 600 crore through a greenshoe option.

Vikram Gupta, the founder and managing partner of IvyCap Ventures, expressed satisfaction with the accomplishment, highlighting the significant role played by existing investors in fueling this milestone. Despite facing challenges in the inflow of domestic capital, Gupta reiterated their steadfast belief in the growth potential of indigenous investments. He emphasized that the success of Fund III is a testament to this conviction.

Fund III boasts a substantial increase, nearly quadrupling its size compared to its predecessor. IvyCap Ventures envisions deploying this capital over a span of 12 years, focusing on nurturing Indian startups. The fund aims to support approximately 25 companies at their Series A stage, with an average initial investment of Rs 30-50 crore.

Maintaining a sector-agnostic approach, IvyCap Ventures has already allocated approximately 40 per cent of the fund. Gupta disclosed that investments have been initiated in seven promising enterprises, with a portion reserved for subsequent rounds in existing portfolio companies. A dedicated Rs 100 crore has been earmarked for seeding promising startups, reflecting the firm’s commitment to fostering innovation at its nascent stages.

Reflecting on IvyCap’s track record, Gupta provided insights into the performance of previous funds. The inaugural Fund I, with a corpus of Rs 240 crore, has yielded remarkable returns, tripling the initial capital for its investors. Fund II, poised to surpass its predecessor in terms of returns, is anticipated to deliver even greater success. Gupta highlighted the exceptional performance of specific investments, notably citing Purplle, a standout performer in Fund I, which generated an impressive 22-fold return on investment.

IvyCap Ventures remains optimistic about its investments, particularly in companies like BlueStone Jewellery, where substantial returns are anticipated upon potential listing. Gupta emphasized the firm’s role as a supportive co-investor in subsequent funding rounds for its portfolio companies, eschewing secondary funding for previous funds.

In conclusion, IvyCap Ventures’ successful raise of Rs 2,100 crore for Fund III underscores the resilience and potential of domestic capital in fostering the growth of Indian startups. With a robust investment strategy and a proven track record, the firm is poised to continue driving innovation and delivering exceptional returns for its investors in the dynamic venture capital landscape.