InnoVen Capital raises Rs 740 crore towards the first closing of a new fund

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Bombay: Venture capital firm InnoVen Capital has raised Rs 740 crore ($ 100 million) towards the first close of its new fund. The fund’s target body is Rs 1,000 crore, with a green shoe option to raise an additional Rs 1,000 crore, the company said in a statement.

The main investor in the fund is Innoven Capital Pte Ltd, a joint venture of Seviora (Temasek) and United Overseas Bank, according to the statement. “Although the fund is independent of stadiums and sectors, the focus will be on sectors such as consumer internet, B2B commerce, enterprise software, fintech, health technology and logistics, ”the company said.

InnoVen has executed over 250 transactions with over 180 startups. Since 2017, he has disbursed around $ 400 million. According to the company, the companies in its portfolio have raised more than $ 20 billion in external capital and are now valued at more than $ 70 billion.

Some of the companies in its portfolio include Byju’s, Swiggy, Oyo Hotels & Homes, Eruditus, DailyHunt, PharmEasy, Infra.Market, Zetwerk, Moglix, FirstCry, BharatPe, boAT, Licious, Blackbuck, Rebel Foods and OfBusiness.

“India is now home to over 50 unicorn startups and the third largest venture capital ecosystem in the world. Over the years, we have been fortunate to partner with some of the best founders and startups, including 17 who have achieved unicorn status, ”said Ashish Sharma, Managing Partner at InnoVen Capital.

A venture capital fund invests alongside equity investors in startups, helping them with capital to meet their working capital and other debt needs. Instead of debt, these funds get a small equity stake in the company, providing an equity advantage to these funds as the company’s valuations rise. Generally, for a venture capital fund, due to the cyclical nature of the capital deployed, a fund may invest more than the total funds it has received.

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“With record fundraising and a vibrant IPO market, we expect the formation of new startups to multiply by several, leading to higher demand for risky debt going forward,” said Sameer Mansukhani, partner at InnoVen Capital. “Risk debt is now an integral part of financing rounds and the founders have a good appreciation for the product. ”

Investment in risky debt in India has seen an unprecedented increase over the past five years. Funds such as Alteria Capital, Blacksoil, Stride Ventures, Trifecta Capital and Anicut Capital are among those that are carving out a significant place for themselves in the sector. The amount of financing raised through risky debt peaked 25 quarters during the January to March 2021 quarter.

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According to data from Venture Intelligence, a company that tracks investments, financial data and ratings of private companies, the financing of risky debt raised by Indian companies in the first quarter of 2021 reached $ 91 million.

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