Venture capital firm Z3Partners has raised INR 100 Cr marking the first close of its maiden fund with a target corpus of INR 730 Cr ($100 Mn) targetting high-growth startups across consumer and enterprise sectors. The fund has already invested in cybersecurity SaaS startup CYFIRMA and social commerce startup DealShare.
Z3Partners will invest in the range of $3 Mn – $ 5 Mn in 8 to 10 startups through this fund, the company said. The firm is founded by Gautam Patel, co-founder of tech investor Zodius, which has backed BigBasket, Pepperfry among other companies, along with Anand Batra, Yusuf Allana, and Avinash Kapur. Z3 hopes to hit the target corpus by Q3 2021, according to Patel.
“We will look at companies that have been around for three to five years, which are market leaders in their area and which do three to five crores of revenue per month, companies that will get to EBITDA positive within two years of us investing in them,” he added.
Z3Partners would focus on B2B and B2C ecommerce, fintech, data analytics, SaaS startups, agritech and cybersecurity.
The cofounder told Mint, Z3 has raised capital from family offices and high net worth investors, and will be targetting institutional investors for the final close. “We have a strong digital and tech portfolio that is performing well at Zodius Technology Opportunities Fund. As a result, our long-standing investors have been hugely supportive; in spite of covid-19, we’re doing our first close at Z3Partners with mainly HNIs and Ultra HNIs in India as well as Europe and the US,” Patel was quoted as saying.
Zodius invested over $15 Mn in Onsitego, the VC firm’s first investment through its $200 Mn Fund III. Zodius has closed two funds so far — Zodius Technology Fund and Zodius Technology Opportunities Fund, with a cumulative corpus of $140 Mn. The VC’s portfolio includes Cyfirma, online grocery delivery unicorn BigBasket, cloud kitchen startup FreshMenu, lingerie brand Zivame and furniture marketplace Pepperfry, fintech startup OfBusiness and biotech-focussed startup MedGenome .