Financial Services Firm, IIFL Raises $150 Mn Fund To Invest In Startups & VC Funds

There is a phenomenal increase in high net worth Indians (HNIs) participating in the Indian startup ecosystem. In past few months, it has also been seen that large number of VC funds have raised capital, even international VC funds have also increased their participation in the startup ecosystem in the country.

Joining the league is IIFL Wealth (IIFLW) Management Ltd, a subsidiary of IIFL Holdings Ltd, which is all set to raise more than $150 Mn (INR 1,000 Cr) fund to invest in startups and venture capital funds in the country.

The wealth management subsidiary also plans to set up an incubation centre for startups by September. For this incubation centre, IIFLW will invest $3.8 – $7.6 Mn (INR 25-50 Cr).

Karan Bhagat, managing director of IIFL Wealth said, “It’s an ecosystem that we cannot ignore. Out of the total funds 40% of the corpus will be invested directly in startups or as co-investments with other funds while 60% of the capital will be allocated for investment in venture funds.”

According to ET report, IIFLW has roped in a battery of stalwarts from the startup sector. Aprameya Radhakrishna of taxi aggregator firm TaxiForSure, Sandeep Tandon of online recharge platform FreeCharge and Ashutosh Taparia of specialty women’s healthcare company Famy Care are said to join the investment board of the venture fund.

Mumbai-based financial services company, IIFL, manages and advises over $11 Bn (INR 75,521 Cr) in assets. This move is being marked to set a precedent for other financial services players like Edelweiss Financial Services, who is also eyeing the startup sector.

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