Mid-stage PE firm Gaja Capital has closed its third round of funding by raising $240 Mn. The firm’s third fund, Gaja III, has been backed by International Finance Corp (which has parked about $130 Mn in the fund), US-based corporate pensions, state pensions, fund of funds, family offices and financial institutions.

Besides, a number of LPs, which backed the firm’s previous fund including RWB Private Capital Fonds, MJX Capital Advisors and HDFC, also participated in the round.

With the Gaja III fund, the company is planning to make 8-10 investments with an average ticket size ranging between $5-40 Mn. It plans to invest in ventures that are 7-10 years old and have been set up by first generation entrepreneurs.

Gopal Jain, managing partner, Gaja Capital, said, “The environment is no easier or tougher than before. For growth capital investors, it has been hard to raise funds, which is why so few of them have managed to do so successfully. There is an extraordinary level of activity in the Indian entrepreneurial space, and which has shot up by almost 10 times over the last 24 months. We have a full and deep pipeline of investments at this point.”

The PE firm has already announced two transactions from its third investment vehicle. In February last year, it led $9 Mn (INR 60 Cr) round of funding in frozen bakery and confectionery producer and supplier, Bakers Circle, while in October, it invested about $9.7 Mn (INR 65 Cr) in sports and fitness education venture SportzVillage.

Gaja Capital, which primarily focuses on the consumption segment, with an emphasis on the education, financial services, consumer & healthcare sectors, now manages assets of about $500 Mn, across its three investment vehicles.

Earlier this month, Paragon Partners, a $200 Mn PE fund, announced its first close, having received $50 Mn in commitments.


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