Upekkha, a software-as-a-service (SaaS)-focused accelerator fund, on Thursday said it has hit the first close of $15 million for its $40-million fund, with a lead investment from WestBridge Capital.
The fund is expected to invest in 70 early-stage startups in 2024 and 200 such firms in three years, with a cheque size of about $125,000.
The investors in the fund include Godard Abel, founder and CEO of G2, a peer-to-peer review site.
While the startup sector is under duress of larger macroeconomic circumstances and funding winter, 2023 witnessed mixed funding outcomes for early-stage startups. Upekkha’s fundraising comes at a moment when larger investor sentiment is that of caution and betting on truly promising ventures post scrutiny.
The year 2024 will see a return focus on unit economics and capital efficiency, Upekkha said in a statement.
A recent report by Bessemer Venture Partners expects Indian SaaS to be worth $25 billion by 2025, currently valued at over $12 billion.
Indian SaaS accounts for a 5% share of the global market and is poised to reach 8% by 2027, per industry estimates.
On Wednesday, GetVantage, a Mumbai-based alternative lending platform, launched its $30-million SaaS Accelerator Fund II.
Currently, Upekkha’s portfolio has more than 165 startups, including Gim Books, Mentorskool, NirogGyan, and Thrive.
“Indian SaaS, now powered by AI, will grow fast and as a result attract greater investment,” said Prasanna Krishnamoorthy, Managing Partner at Upekkha.