IDG Ventures India Closes $150 Mn For Its Third India Fund

Bangalore-based venture capital fund IDG Ventures India has closed $150 Mn (INR 1000 Cr) India fund, reported ET.

The venture capital firm expects to raise the entire money for its $200 Mn third fund called IDG Ventures India Fund III by the end of this year. IDG’s third India Fund is comparatively larger than its two other funds raised earlier, which had a corpus of $100 Mn each.

The news for IDG Ventures India looking to raise $200 Mn surfaced the media in 2015.

An person close the development said that with the larger corpus amount, IDG Ventures India plans to write bigger cheques for the startups at mature stage (Series-B investments and beyond), who aim to fuel growth. The person also added that around one-fourth of the fund is expected to be allocated to later-stage investments.

IDG Ventures India is an India-focused technology venture capital fund. The fund is part of IDG Ventures, a global network of technology venture funds. The VC firm typically invests between $0.5 Mn to $10 Mn at Seed, early and expansion stages in technology and technology-enabled ventures. The firm has invested in about 50 startups in India. Its portfolio included startups like Myntra, Lenskart, Zivame, Tripoto, CityFlo, RentoMojo, Zimmber, Vserv, Manthan, Perfint, NestAway, Hiree and Uniphore among others.

It was reported that IDG Ventures India has already started deploying its new funds. It led the investments into mobile health and fitness startup HealthifyMe that raised $6 Mn (INR 40 Cr) in Series A round of funding led by IDG Ventures India and participated in a $60 Mn (INR 400 crore) Series D round of funding into Lenskart.

IDG Ventures India also counts Ratan Tata and Infosys co-founder Kris Gopalakrishnan as its advisers.

According to VCCEdge data, the pace of VC investments in Indian firms has dropped significantly. The VC firms struck 90 deals in the January-March quarter this year, compared with 138 deals in the same year-ago period.

Recently, Sequoia Capital managed to close $920 Mn fund capital to invest majorly in Indian startups. Also, venture capital firms like Unitus Seed Fund and Accel Partners announced that it would close its $50 Mn and $400 Mn India-focused fund respectively, by the end of this year. Besides, global firms are increasingly launching India-dedicated funds. Russian conglomerate, Sistema Joint Stock Financial Corporation (JSFC) has set aside $50 Mn Asia fund for Indian startups. Last year, various VC firms such as Saif Partners, Accel Partners, Mayfield, and Lighthouse have raised India-centric funds.

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