Matrix Partners Increases The Size Of India-Focussed Fund To $525 Mn

Matrix Partners India has bumped up the size of its fourth India-focused fund to $525 Mn from $450 Mn earlier as it accumulates further dry powder amid a purported funding winter. 

This comes a year after it was reported that the Indian arm of the US-based private equity investment firm was raising a $450 Mn fund targeted largely at Indian startups. 

In a regulatory filing with the Securities and Exchange Commission (SEC), Matrix Partners said it has already raised $518 Mn for the fund and is targeting raising another $7 Mn, bringing the total to $525 Mn.

Matrix Partners has also applied to raise another sidecar fund of $14.75 Mn through Matrix Partners India IV-A.

Inc42 has reached out to Matrix Partners India for a comment on the development. The story will be updated on receiving a response from the company. 

The expansion of the new fund comes nearly four years after Matrix Partners India closed its third fund at $300 Mn. The Indian arm of the firm was founded in 2006 as a subsidiary of US-based Matrix Partners.

The PE firm counts some of the biggest Indian startups as part of its portfolio, including Razorpay, OfBusiness, Ola, VerSe. Matrix India reportedly counts as many as 10 unicorns in its portfolio and is one of the biggest investors in the country.

The latest development comes at a time when the Indian startup ecosystem has been marred by a raging funding drought which has taken the sheen off the ecosystem. Adverse market conditions and macroeconomic pressures have made matters worse for these homegrown companies. 

However, even as investors tighten their purse strings, they have been gathering huge amounts for deploying later in startups. During January-April 2023, 18 funds with a corpus of $2 Bn were announced for Indian startups. This is besides the two fund launches of global investor B Capital, cumulatively pegged at more $2.6 Bn, a portion of which will also be deployed towards India and Asia. 

This year, homegrown VC firm BoldCap announced a $25 Mn second fund, while Capria Ventures marked the first close of its $100 Mn fund. Matrix Partners’ global peers such as Sequoia India and Lightspeed Ventures also unveiled $2.85 Bn and $275 Mn worth of India–focussed funds last year, respectively. 

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