Fireside Ventures Announces Final Close Of Third Fund At $225 Mn

Early-stage venture capital (VC) firm Fireside Ventures has announced the final close of its third VC fund, the Fireside Fund III, at $225 Mn (INR 1,830 Cr).

Fireside Fund III has seen the participation of new and existing investors such as Self-Reliant India Fund, Investment Corporation of Dubai, SBI, Premji Invest, Waterfield Fund of Funds, ITC, Emami, Sharrp Ventures and several startup founders.

The third fund from Fireside Ventures will invest in 25-30 startups across healthtech, edtech and D2C. The VC firm reiterated the current investor sentiment by stating that it would look for brands with ‘responsible practices’ and ‘healthy governance’.

The VC firm’s focus on D2C comes as Indian D2C startups secured $202 Mn in funding across 48 deals in Q3 2022, per Inc42 data.

Kanwaljit Singh, managing partner at Fireside Ventures said, “Fireside Ventures was created with a very clear vision, to invest in the next generation of consumer brands, a space that was witnessing the start of disruptive changes.” 

“Five years later, we are delighted to see the magnitude of change these brave new digital-first brands are creating, and we look forward to seeing them create even more value in the future,” added Singh.

The third fund’s final close follows a year after the VC firm closed its second fund, Fireside Fund II, at $118 Mn. Founded in 2017, Fireside Ventures has invested in 31 startups and has $300 Mn in assets under management (AUM). 

The VC firm’s first two funds have invested in multiple big-name startups such as D2C unicorn Mamaearth and IPO-bound boAt, along with brands such as Bombay Shaving Company, Vahdam, The Sleep Company, Yoga Bar, SLAY Coffee and others. 

Fireside did get a partial exit from boAt when the D2C electronics startup raised $100 Mn from Warburg Pincus in 2021. The VC firm’s latest investment in an Indian startup happened in the $7 Mn funding round of kids snackmaker Slurrp Farm.

Fireside Ventures’ fund close comes as VC firms and investors from India and across the world have announced or launched funds worth over $16 Bn in the first nine months of 2022. That is more than 2.6 times the amount of funds launched or announced in 2021, per Inc42 data. Marquee investors such as Sequoia, Accel and others have announced huge funds to invest in Indian startups in the coming quarters.

Earlier this week, venture debt platform BlackSoil raised INR 250 Cr to provide funding to early-stage startups across the country.