Xponentia Capital’s Second Fund Raises INR 365 Cr

SUMMARY

Under the second fund, Xponentia will invest up to INR 100 Cr in 8-10 startups

Xponentia is planning to raise an additional INR 750 Cr for the final closure of the fund

It invests in startups that work in finance, healthcare, consumer and B2B sectors

Private equity company Xponentia Capital Partners has completed the first closure of its second fund, Xponentia Opportunities Fund 2 after securing INR 365 Cr from limited partners (LPs).

According to the ET report, under the second fund, Xponentia will invest up to INR 100 Cr in 8-10 startups.

Xponentia is planning to raise an additional INR 750 Cr for the final closure of the fund. It is anticipated to close the fund before December this year.

Limited partners or investors that have backed the fund are Indian corporates, HNIs and family offices.

Founded by PR Srinivasan and Devinjit Singh, the Mumbai-based private equity company invests in startups that work in finance, healthcare, consumer and B2B sectors. Other criteria that it follows while shortlisting startups for investment includes analysing the business models, checking if these companies can make INR 30-35 Cr in EBITDA (earnings before interest, tax, depreciation, and amortisation) among others.

This year, Xponentia Capital reportedly participated in a $40 Mn funding round of electric vehicle manufacturer Altigreen along with Sixth Sense Ventures, Accurant International, Momentum Venture Capital and Reliance Industries Ltd.

In 2021, the PE company infused nearly $5 Mn in the babycare product startup, R for Rabbit and also led a Series A funding round of fintech startup Easy.

During the same time period, it reportedly closed its first fund at INR 400 Cr. In the first fund, it backed about eight startups.

Some of its portfolio companies include Flight Simulation Technique Centre, Barbeque Nation, R4Rabbit, Easy Home Finance, Medsource and Altigreen.

As per an Inc42 report, a total of 78 funds were founded to back Indian startups in the first half of 2022. These funds raised over $12.8 Bn in aggregate to back homegrown startups.

Recently, LetsVenture’s cofounder Shanti Mohan rolled out a VC fund Propell to invest INR 50 Cr in 30 early-stage startups that work in diverse sectors such as ecommerce, fintech, SaaS and D2C.

Besides, venture capital company First Cheque sealed its second fund after raising $5 Mn and increasing its asset under management up to INR 90 Cr.