Nexus Raises $450 Mn For Fourth Fund; Becomes Second Largest VC Firm In India

One of the India’s leading venture capital firm, Nexus Venture Partners, has closed its fourth fund, Nexus Ventures IV Ltd with committed capital of over $450 Mn. Most of the Nexus IV capital commitment came from long-term Nexus investors who partnered with them in previous funds.

With this, Nexus has gathered over $1 Bn in terms of total funds under management. Three of its earlier funds include – Fund I ($100 Mn) announced in 2007, Fund II ($220 Mn) closed mid 2008 and Fund III ($270 Mn) in end of 2012.

The new fund will mainly be used to make new seed and early-stage bets in the tech-enabled business sectors like consumer retail, financial services, healthcare and education, in addition to enterprise and software companies. Besides, the funds will also be used to make follow-on investments.

Nexus was the first fund to work with Indian technology startups that plan to address global markets. Its portfolio includes companies like Craftsvilla, OLX, ShopClues, Snapdeal, Stayzilla, Delhivery, Netmagic, RoadRunnr, Suminter among others.

Earlier in February, the VC firm was in talks with limited partners (LPs) – industry parlance for entities like pension funds and endowments that invest in private equity or venture capital funds – to raise around $400 Mn for this new fund.

Nexus Venture Partners began operations in 2006 and have invested in over 60 companies since its inception.

With this new fund, Nexus has now become the second-largest VC firm in India to have raised about $1.2 Bn. It is behind Sequoia, which has raised $2.2 Bn in total.

The other homegrown venture firms who are looking to raise funds or has already raised funds are, Helion Venture Partners, Kalaari Capital, IDG Ventures India, Accel Partners India and Matrix Partners India.

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