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IDFC Alternatives Launches Fourth Startup Fund With A Corpus Of $100 Mn

IDFC Alternatives Launches Fourth Startup Fund With A Corpus Of $100 Mn

The private equity arm of IDFC Group, IDFC Alternatives has announced to launch its fourth fund with a corpus of $100 Mn.

With this fund, IDFC is looking to invest in approximately 10 startups with a ticket size of around $30 Mn-$50 Mn.

“We have raised $100 Mn from domestic institutional investors and large family offices,” said Girish Nadkarni, Partner, Private Equity at IDFC Alternatives.

As per reports, the firm has made its first investment from the new fund in Mumbai-based non-banking financial company InCred Finance, infusing $11.74 Mn (INR 80 Cr)  for 10% equity holding at a valuation of $117 Mn (INR 800 Cr).

Founded in 2016, InCred aims to leverage technology, and the Internet, to make credit decisions, loan disbursal, and collections, smoother. It offers technology led financial services and plans to grow at a rocket pace to INR 10,000 Cr, and beyond.

The startup raised $75 Mn in a funding round led by former Deutsche Bank co-CEO Anshu Jain and private equity firms in August 2016.

InCred will now focus on business with SME financing and three retail-focussed ventures – unsecured consumer finance, mortgages and education loans.

Last year, IDFC also had successful exits from startups such as Parag, Star Agri, Manipal IS, VIOM, and Delhi Assam Logistics. “These investments were done from our third fund of $650 Mn and we have a DPI of around 1, which puts us in the high quartile bracket,” Nadkarni said.

Other startup funds currently working actively are Softbank’s tech-focussed Vision Fund, Lodha Group’s $7 Mn real estate fund, Mukesh Ambani’s $748 Mn fund for Indian digital startups and more.

[The development was reported by ET.]