IvyCap Ventures, which has backed Indian startups including Purplle, Bewakoof, Biryani by Kilo and BlueStone, has closed its third fund at about $252 million (Rs 2,100 crore), according to a statement.
The fund’s investors (limited partners) include leading Indian institutions, the IIT Alumni Trust, and a few family offices. Close to 60% of the corpus raised came from IvyCap’s existing backers.
IvyCap Ventures Trust Fund III, launched in 2021, hit its first close at $214 million in February 2022. While the firm’s Fund 1 had raised Rs 240 crore in 2014, its second fund reached the final close at Rs 535 crore in 2020.
With the latest fundraising, the firm’s total assets under management (AUM) has reached Rs 5,000 crore ($600 million).
The fund plans to invest in about 25 companies at Series A with an average ticket size of Rs 30-50 crore. It also plans to invest 20% of the corpus in existing portfolio companies.
Additionally, Rs 100 crore has been earmarked for investment in seed-stage companies through a separate team leveraging the IvyCamp platform, collaborating with various partners such as IITs, IIMs, incubation centres, accelerators, corporates, and other platforms.
Around 40% of the corpus has already been invested in various companies, including Celcius, Agraga, Eggoz, ZestIot, Snitch, GradRight, Flexifyme, Beatoven.ai, and Dhruva Space. The fund has made follow-on investments in companies like LendBox, Miko, Biryani By Kilo, BlueStone, and others.
Over time, IvyCap Ventures has built a diverse portfolio of approximately 50 companies across sectors including healthtech, consumertech, deeptech (SaaS, AI/ML, IoT), fintech, edtech, and emerging sectors like agritech and spacetech.
The firm has also scored a few exits, mostly through mergers and acquisitions. Notable deals include Clovia (acquired by Reliance), Sokrati (acquired by Dentsu International), Pharmarack (acquired by a consortium of pharma companies including Sun Pharma and Cadilla Pharma), and Aujas (acquired by NSEIT).