By this fund, the agency plans to spend money on about 25 early-stage startups, with common beginning funding quantity starting from Rs 30-50 crore. It has already deployed 40% of the capital from the third fund to startups resembling Dhruva House, Snitch, Celcius Logistics, GradRight, Eggoz and Flexifyme.
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The capital for IvyCap’s third fund has primarily been raised from home restricted companions, or sponsors of funds, together with establishments like IIT Alumni Belief, and native household places of work, it mentioned in a press release.
The third fund had made its first shut at Rs 1,608 crore in February 2022. It had come at a time when a number of funding companies in India have been more and more elevating rupee-denominated capital to again startups. These included A91 Companions, Stellaris Enterprise Companions, Alteria Capital, and Edelweiss Different Asset Managers.
IvyCap mentioned 20% of the fund is earmarked for investing in its present portfolio firms, with the agency stepping in as a co-investor throughout these firms’ future fundraising rounds.
A battle chest Rs 100 crore has been put aside for investing in seed-stage firms, managed by a separate workforce leveraging the IvyCamp platform, the agency mentioned.
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“We are literally seeing lots of concepts for disruption whereas we’re nonetheless prioritising sectors like shopper tech, well being tech, fintech, B2B, SaaS and enterprise fashions. These are extremely disruptive areas for instance generative AI, machine studying, blockchain, and web of issues,” mentioned Vikram Gupta, founder and managing accomplice, IvyCap Ventures.“Local weather tech is an space which we’re fairly intently wanting into as a result of globally that is changing into the theme and we’re fairly actively that,” he added.
In 2014, IvyCap launched its maiden fund with a corpus of Rs 240 crore, and invested in 10 firms, whereas Fund II was more-than-double the dimensions at Rs 530 crore.
In response to Gupta, within the first fund they focused to boost Rs 200 crore with the concept that 25% of the earnings generated by them as fund managers might be allotted as endowments to the IITs.
In its first fund, IvyCap clocked a virtually 3x distribution of money to paid-in capital (DPI), whereas the second fund has seen a 0.4x DPI, primarily pushed by exits by way of mergers and acquisitions of firms like Clovia, acquired by Reliance, Sokrati, acquired by Dentsu Worldwide, amongst others. Its first fund achieved a Rs 330 crore exit, delivering 22x return on funding in Purplle.
DPI is a metric that measures the realised earnings which were distributed by a fund again to its investor base. It’s a ratio of cumulative proceeds returned to a fund’s restricted companions relative to its paid-in capital.
“In Fund II, we raised Rs 530 crore after we have been focusing on Rs 500 crore. We adopted the identical strategy of investing in early-stage firms and in search of disruptive companies,” mentioned Gupta. The fund invested in 15 new firms between 2018-2021.
Based in 2011, IvyCap Ventures has invested in round 50 firms spanning sectors resembling healthtech, shopper tech, deeptech, fintech, edtech, agritech and spacetech.
