A91 Partners To Raise Its Largest Fund At $750 Mn

SUMMARY

A91 Partners is in the process of raising its largest fund to date, targeting a range of $700-750 Mn

With a substantial increase in fund size, A91 Partners may consider raising its average investment from $20-30 Mn to $35-40 mn for its Fund-III

A91 Partners closed its second fund at $550 Mn in 2021

Mumbai-based investment firm A91 Partners, which counts Digit General Insurance, Aye Finance, Sugar Cosmetics, Atomberg Technologies and Hector Beverages as among its portfolio companies, is in the final stage to raise its largest ever fund to date at $700-750 Mn.

This represents one of the most rapid expansions in fund size seen among domestic investment funds, reflecting a growing interest in the Indian market among limited partners.

“A91 has expressed to its LPs (limited partners, or sponsors in funds) that they are aiming to raise their third fund at $700-750 million… They will launch and market the fund after a few months,” ET reported, citing source.

With a substantial increase in fund size, A91 Partners may consider raising its average investment from $20-30 Mn to $35-40 mn for its Fund-III.

Their strategy revolves around supporting capital-efficient, growth-oriented businesses across various sectors. The investment sizes could see an uptick once the new fund is raised and begins deployment later this year.

Founded in 2018, A91 Partners is an investment firm investing across consumer, technology, financial Services and healthcare sectors in India. In 2018, ex-Sequoia executives V.T.

Bharadwaj, Abhay Pandey, Gautam Mago came together to launch A91 Partners, a venture capital firm focussing on mid-stage startups. Later in 2019, they closed their Fund I at $351 Mn. A91 Partners closed its second fund at $550 Mn in 2021.

A91 Partners has made partial exits from its portfolio companies, including Atomberg, a brand specialising in energy-efficient small appliances. This exit was part of a round led by Temasek and Steadview Capital. Additionally, the firm has partially exited from Pushp, a spice maker, where Nikhil Vora’s Sixth Sense Venture acquired a secondary stake from the fund.

A91 Partners’ discussions to raise capital coincide with other major domestic players also preparing to secure fresh funds. ChrysCapital and Kedaara Capital, for instance, are expected to finalise India-dedicated vehicles ranging from $1-2 Bn this year.

While technology-focused venture funds may be experiencing delays in cash distributions to limited partners (LPs), diversified investment firms have managed to attract significant interest from global sponsors.

2023 saw the announcement and launch of 64 funds, including venture capital funds, micro-funds, and corporate VC funds. These funds amounted to over $5.6 Bn. In comparison, 2022 witnessed the launch of 126 funds, raising over $18 Bn for startup investments, as per Inc42 analysis.