Fireside Ventures, an early-stage venture fund that invests in digital-first consumer brands, on Wednesday announced that it has closed its third fund at $225 million (Rs1,830 crore).
Fireside Fund III is anchored by new and existing Indian and global investors including Self-Reliant India Fund, Investment Corporation of Dubai, SBI, Premji Invest, Waterfield-Fund of Funds, ITC Ltd., Emami Ltd., Sharrp Ventures, and several startup founders.
The third fund, which is double the size of its predecessor, will invest in 25-30 startups across health and wellness, edutainment, lifestyle, and FMCG, the firm said in a statement.
In addition to products which offer personalised customer experiences using data analytics-based value propositions, Fund III will also seek out brands with a strong purpose, responsible practices, and healthy governance.
“Fireside Ventures was created with a clear vision, to invest in the next generation of consumer brands, a space that was witnessing the start of disruptive changes. Five years later, we are delighted to see the magnitude of change these brave new digital-first brands are creating, and we look forward to seeing them create even more value in the future,” said Kanwaljit Singh, Managing Partner, Fireside Ventures.
The market for D2C brands in India is set to touch $100 billion by 2025. Trends like e-commerce penetration, widespread focus on health and wellness, and normalisation of virtual experiences gave a huge push to digital-first brands.
Launched in 2017, Fireside Ventures manages $395 million worth of assets across three funds. The firm has been the first institutional investor in 75% of its 31 portfolio companies.
From its first two funds, the firm invested in personal care products unicorn Mamaearth, IPO-bound boAt, Vahdam, Slurrp Farm, Kapiva, 91 Cycles, Design Café, FS Life (erstwhile FableStreet), The Sleep Company, Gynoveda, Wellbeing Nutrition and Pilgrim, among others.