Forbes India
SUMMARY
The sector-agnostic growth stage fund was oversubscribed by 34%, compared to an initial target close of INR 750 Cr
Chiratae Growth Fund I will invest in the growth rounds of startups from its portfolio and beyond
The VC fund saw investment from existing investors Pratithi, 57 Stars and Manish Choksi, along with new investors SBI and IIFL
Early-stage venture capital (VC) firm Chiratae Ventures has announced the final close of its first-ever, ‘Growth Fund I’, at INR 1,001 Cr. The fund saw its first close come in November 2022, when the VC firm first closed the growth fund at INR 759 Cr.
The sector-agnostic growth stage fund was oversubscribed by 34%. Chiratae Growth Fund I will invest in the growth rounds of startups from its portfolio and beyond. It will be a sector-agnostic fund to support the growth and expansion of 15-20 companies signing cheques worth $5 Mn – $20 Mn.
“CGF-I will invest in the growth rounds of market-leading technology startups from its portfolio and other new opportunities, making it a sector-agnostic fund to support the growth and expansion of companies,” said the VC firm in a press statement.
The Bengaluru-based VC firm saw the participation of the likes of Pratithi (Infosys cofounder Kris Gopalakrishnan’s family office) and global alternative asset manager 57 Stars during the final close.
Manish Choksi, the vice chairman and a non-executive board member of Asian Paints, also invested via his family office and through other channels. New investors joining the fund include the State Bank of India and IIFL.
Chiratae has already started building a portfolio of startups, with its investment in Lenskart’s recent $400 Mn fundraise, with Chiratae investing INR 100 Cr into the D2C eyewear brand.
Founded in 2006, Chiratae Ventures is more popularly known for backing early stage startups and currently manages assets worth $1.1 Bn. It has backed 130+ startups across SaaS, consumer tech, healthtech, deeptech, agritech, fintech and other domains. In the statement, Chiratae also said it has seen 48 exits, including 3 IPOs.
It has invested in the likes of Bizongo, Curefit, Fibe, FirstCry, Myntra, Policybazaar, Pixis, Vayana, and Uniphore.
Sudhir Sethi, founder and chairman of Chiratae Ventures said, “The oversubscription of the fund by 34% is a testament to the trust and confidence our investors have placed in us. As we embark on this exciting new chapter, we remain committed to identifying and investing in innovative startups that have the potential to drive transformative change and create long-term value.”
Chiratae Ventures’s Global Advisory board consists of Ratan Tata (chairman), Kris Gopalakrishnan, Manish Choksi (vice chairman, Asian Paints), Bruno Raschle (founder, Adveq Zurich), Dr Andreas Hettich (chairman, Hettich Corporation Germany) and Dr Ferzaan Engineer (founder, Cytecare and Nightingale).
Before this, the VC firm had launched a $337 Mn funding round, Fund IV.
Chiratae’s first fund was closed in 2007 at $150 Mn; six years later, the company closed its second fund at $175 Mn and in 2016, the venture’s third round closed at $208 Mn.
Chiratae’s announcement comes at a time when despite suffering from an ongoing funding winter, the Indian startup ecosystem has seen continued support in the form of fund launches and announcements. According to Inc42 data, funds worth more than $2 Bn were launched or announced in the country in Q1 2023.
