Nexus To Raise $700 Mn Fund To Back India & US-Based Startups: Report

Venture capital (VC) firm Nexus Venture Partners is reportedly in discussions to raise a $700 Mn fund to back Indian and US-based tech startups. 

According to a Reuters report quoted sources, Nexus will close its seventh fund within two months. With this, its asset under management (AUM) will stand at over $2 Bn.

Inc42 reached out to Nexus but the VC firm refused to comment on the development.

The upcoming fund will back early-stage Indian startups working in tech and internet segments. It will also support US-based software companies.  

The development comes almost a month after Nexus led a $4.3 Mn seed funding round of B2B marketplace Covvalent. 

Zetwerk’s Vishal Chaudhary, Livspace’s Ramakant Sharma, BlackBuck’s Rajesh Yabaji, MSD’s Rehan Khan, Rupifi’s Jawaid Iqbal, Anubhav & Ankit Singh, and Meghmani Group’s Kaushal Soparkar also participated in the funding round.

Set up in 2006 by Naren Gupta, Sandeep Singhal and Suvir Sujan, Nexus mainly infuses money into US and India-based tech-enabled startups. It counts global pension funds, family office and endowment funds as its investors. 

Nexus’ portfolio includes unicorns Delhivery, Unacademy, Druva, PubMatic and PostMan.

Following the death of cofounder Gupta, Sujan is presently heading Nexus as managing directors. Meanwhile, Singal exited the firm in 2021. 

In April last year, it participated in edtech startup Newton’s $24.7 Mn funding round and insurtech Turtelmint’s $120 Mn fundraising round.

In February 2021, it was reportedly holding discussions to raise funding for a $550 Mn sixth fund. Prior to that, it raised about $450 Mn fifth fund in 2019.

Interestingly, a slew of VC funds have been launched in recent times. Java Capital’s INR 75 Cr fund, SphitiCap’s $500 Mn fund, Artha Group’s INR 450 Cr micro-VC fund are some of the funds launched recently. 

Ongoing funding winter, market disruption, low investor sentiments are prime reasons for low investment by institutional investors in the startup ecosystem. Yet all that not gloomy here. As there are VC funds being launched to make use of this scenario and provide financial stability to startups. 

According to Inc42 funding report 2022, a total of 126 funds including VCs, micro funds, debt funds, CVC funds, among others cumulatively raised more than $18 Bn in 2022. 

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