India Quotient to close its second fund at Rs 130 crore
Early-stage venture capital firm India Quotient is closing its second fund at $20 million from both institutional investors and high net worth individuals.
The Mumbai-based firm, whose investments include fashion-focused social network Roposo and online marketplace for chefs Holachef, has already backed seven startups from the new fund.
Set up by entrepreneur-turned-venture capital investor Anand Lunia along with social venture capital firm Aavishkaar executive Madhukar Sinha, India Quotient has backed 28 companies, which now have a market value of Rs 1,200 crore, and raised Rs 365 crore in follow-up rounds.
India Quotient was initially planning to raise up to Rs 200 crore.
“We decided to cut down on the size of the fund because of appreciation in the existing investments,” said Lunia, who earlier worked at Seedfund, where he led investments like CarWale, and is also an angel investor in food delivery startup Faasos.
According to him, the second fund is up three times on average with five of the seven startups backed already raising series-A round including Holachef, which announced Rs 20 crore funding from Kalaari Capital and Ratan Tata.
Both Lunia and Sinha have contributed up to 10% of the corpus of the new fund, whose other investors include entrepreneurs, angel investors and institutions from both India and overseas.
India Quotient, which backs pre-revenue startups, is targeting mobility and smartphones-focused consumer ventures from the second fund. The investments, which have been undisclosed, include vernacular-focused chat application Sharechat, doctor chat application Meradoctor, home healthcare venture Care 24 and home automation company Oakter.
It will typically start with investments between Rs 30 lakh and Rs 3 crore, building a portfolio of not more than 20 companies.
India Quotient's first fund is already making 3.7 times on the entire corpus raised, enviable returns for investors in the fund like Omidyar Network, SIDBI, Unilazer Ventures and Times Internet Ltd, the digital arm of the Times Group that owns this newspaper.
The new fund is four times the size of Rs 30 crore ($4.9 million) fund it raised in 2013 but still relatively smaller than $200-300 million funds raised by mainstream homegrown VCs like Kalaari Capital and Helion Ventures. India Quotient plans to raise over $100 million for its third fund next year.
“We miss out on some very good deals because we are not able to cut a million dollar cheque from the start and back companies alone for 2-3 years, which some of the larger VCs are able to do,” said Lunia.
Several other seed-focused VC firms like Blume Ventures, Kae Capital and Orios Venture Partners have also hit the road to raise a larger corpus than their previous funds.