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Falcon Edge raises $300 million India dedicated fund

As a part of the deal made with its Limited Partners the portfolio companies that Alpha Wave Incubation (AWI) backs will have to have a core team technology presence in Abu Dhabi, people in the know said.

, ET Bureau|
Last Updated: Feb 17, 2020, 10.00 AM IST
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The fund is being backed by limited partners (LPs) from the UAE and will also invest in Southeast Asia besides India.
BENGALURU: US investment firm Falcon Edge Capital has raised a $300 million India-focused fund, Alpha Wave Incubation (AWI) anchored by an undisclosed entity of the Government of Abu Dhabi and investors from the UAE, according to three people familiar with the matter. Through the fund lifecycle, it will invest in 60-80 early-stage technology focussed angel, seed, and Series A deals in India and Southeast Asia, people quoted above said.

As a part of the deal made with its Limited Partners the portfolio companies that AWI backs will have to have a core team technology presence in Abu Dhabi, people in the know said. “The core focus of the fund is to back startups with capabilities in artificial intelligence and machine learning,” another source said. AWI is going to build a dedicated team to run this fund, which will invest upto $5 million in startups.

ET could not immediately ascertain the investment vehicle for the Government of Abu Dhabi. Emails send to Falcon Edge cofounder and Partner Navroz Udwadia, who is leading the India fund, remained unanswered till press-time, Wednesday.

Falcon Edge will continue to back growth and late-stage startups through its global fund. It has already deployed $100 million via its India Disruption Partners entity, said one persons quoted above.

Business daily Mint had first reported about Falcon Edge raising a $250 million India fund.

Falcon Edge has traditionally invested in growth and late-stage companies in India including ride-hailing app Ola, dockless scooter app Bounce, news platform DailyHunt, and managed real estate company StanzaLiving. The fund has over $3 billion in assets under management.

The UAE connect for the India fund is a way to foster entrepreneurship in the Emirates and reduce its reliance on the energy industry. Even though AWI will invest in ideas that are pertaining to problems in India and Southeast Asia, a technology presence in UAE will help build the right talent pool long term, a source said, explaining the rationale behind the partnership.

India has been a key focus market for reputed technology investors. While Sequoia Capital plans to raise an India and Southeast Asia fund pegged at over $1 billion for investments across seed, growth and late-stage companies, Tiger Global too, plans to deploy a significant part of its newly raised $3.8 billion global private investment vehicle here. At the same time Chinese technology behemoth Tencent has aggressively been snapping up stakes in Indian startups over the last six-eight months closing about ten deals across stages. Others including Steadview Capital and Ribbit Capital have also ramped up their pace in the country.

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