IDG Ventures India to raise a new $200m fund

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IDG Ventures Team (from left): TCM Sundaram, Sudhir Sethi, Ratan Tata, Karthik Prabhakar and Venkat. Photo sourced from IDG Ventures website.

Venture capital firm IDG Ventures is raising a new fund of about $200 million (Rs 1,300 crore), marking an over two-fold increase in the corpus it raised less than a year ago, as per a report in The Economic Times.

This will be the firm’s third venture fund targeting technology investors in both overseas and domestic markets. The fund raising is expected to begin formally in October, and the firm has approached at least 150 family offices for the same, the report said.

Edelweiss Wealth Management is likely to take part in the fund raising process and is expected to mobilise around Rs 100 crore from its clients, the report said.

The firm recently roped in Ratan Tata, former chairman of Tata Sons, as an advisor which has further raised the credibility of the firm. At the time of announcing his appointment, it said that Ratan Tata will be involved in charting the overall business strategy and leadership of the organization.

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IDG Ventures India is part of IDG Ventures, a global network of technology venture funds with more than $4 billion assets under management, over 200 investee companies and 10 offices across Asia and North America.

Typically venture funds raised fresh capital after a gap of three to four years. But looking at India’s robust startup ecosystem venture funds are kicking their plans into a higher gear.

IDG Ventures had raised $90 million (Rs 600 crore) in November 2014. Sequoia Capital, which raised $530 million (Rs 3,496 crore) in May 2014, is looking to raise about $800 million (Rs 5,000 crore) for a new India-focused fund.

Till date, IDG has invested in over 30 startups in India including Zivame, Lenskart, Nestaway, Firstcry, and Adadyn.

Also Read: Ratan Tata joins IDG Ventures India as Advisor

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