SUMMARY
The fund will invest $500K to $4 Mn across segments including SaaS, D2C
The fund will increase 3one4 Capital’s assets under management to over $210 Mn
3one4 Capital’s portfolio includes Yulu, Licious, DarwinBox and others
Bengaluru-based early-stage venture capital firm 3one4 Capital has announced the first close of its $100 Mn (INR 750 Cr) Fund III to invest in 25-30 tech startups across segments. The latest fund will increase 3one4 Capital’s assets under management to over $210 Mn (INR 1,550 Cr).
The fund will invest an average ticket size of $500K to $4 Mn in startups working in the software-as-a-service (SaaS) domain, enterprise automation, direct-to-consumer (D2C), media and content, fintech, and deep technology. Further, the fund will cover sectors such as health, machine-driven intelligent services, edtech, agritech, logistics and distribution, food-tech, mobility, Indian language-focused applications and more.
Siddarth Pai, managing partner at 3one4 Capital, said, “With this new fund, 3one4 Capital is purpose-built to be deeply involved across the lifecycle of the next innovation engines from India. Our deep involvement model is designed to help founders optimise for sustainable growth by serving as a force multiplier on the path towards defensible long-term value creation.”
The fund has currently subscribed to more than 40% of its targeted corpus of $100 Mn with commitments from both new and existing investors. These investors include family offices, endowments, foundations, as well as corporate and financial institutional investors.
Pranav Pai, managing partner at 3one4 Capital said, “Our investor base now combines an intellectually-diverse and globally-positioned pool of resources that provide a consistent competitive edge to the firm and its portfolio companies.” He further noted that the investment from strategic corporations and investors will offer more meaningful capital through the firm’s bottoms-up selection routines to discover more scalable tech-based startups.
Prior to this, 3one4 Capital has raised four funds — a dedicated seed fund, Rising I, and a dedicated opportunity fund called Continuum I — through which it has nearly $110 Mn (INR 800 Cr) capital under management. The investment firm has closed Continuum I and Rising I funds, in December 2019, at $54.6 Mn (INR 400 Cr) and $6 Mn (INR 45 Cr) respectively. Continuum I focuses on investing $3 Mn to $5 Mn in Series B and above round in existing portfolio companies, Rising I will infuse $71K (INR 50 Lakh) to $490K (INR 3.5 Cr) into deals with idea stage and seed-stage companies which includes new and follow-on investments.
The company’s portfolio includes meat and seafood company Licious, blue collar employee management platform BetterPlace, neobanking platform Open, biopharma startup Bugworks, end-to-end enterprise HR software solution DarwinBox, digital content house Pocket Aces, P2P lending platform Faircent, lending startup LoanTap, digital banking company Jupiter and emobility startup Yulu.
