GVFL Ltd, earlier known as Gujarat Venture Finance Ltd, has received capital market regulator Securities and Exchange Board of India‘s (SEBI) approval for its eighth fund, company’s senior executive told DEALSTREETASIA.
The new fund, christened Startup Fund, is looking at raising Rs 250 crore ($37.9 million) from leading financial institutions and aims to achieve its first close at around $19-20 million by March 2016, said Devendra Khandegar, associate VP, GVFL.
The fund is targeting a final close by December 2016. Following the first close, it will start investing in startups and is targeting a ticket size of Rs 5-25 crore per deal.
The fund will chase investible bets in technology-enabled segments like edtech, fintech, electronics, communication, healthcare, hyperlocal delivery, logistics, agritech and Internet of Things.
The venture capital firm enjoys a strong institutional investor base and has seen participation from LIC, SIDBI, State Bank Group, BOB, BOI, Union Bank of India and others in the past. Some of these investors are likely to participate in this fund as well.
The Startup Fund plans to participate in Series A and seed stage rounds in promising Indian startups.
GVFL has managed seven venture capital funds since its inception in 1990. It has backed 83 technology and growth stage companies, according to its website. “We have one of the strongest track records in India, with 60 exits,” he said.
Last year, the company planned to float a $1-billion fund exclusively for Japanese ventures in Gujarat, as per a Business Standard report.
The year saw several Indian fund launches as well as global fund launch by foreign countries to invest in the country.
Most recently, Canbank Venture Capital Fund, a wholly-owned subsidiary of Canara Bank, announced the launch its sixth fund of Rs 650 crore which will be a sector agnostic fund but will avoid sectors like real estate and core infrastructure. VC firm Blume Ventures also closed its first round of its Fund II at $30 million.
Another company IIFL Wealth Management is raising a fund of Rs 1,000 crore to be invested in startups and venture capital funds.
Moreover, US-based Peesh Venture Capital (PVC) is also launching couple of funds. First, a $50 million fund to back clean technology, Nano technology and edtech firms and second, a $10-million fund, a micro-cap fund, to invest in education technology, cleantech and nanotechnology focused companies.
The government has also launched two funds with total corpus of Rs 12,000 crore including Rs 2,000-crore India Aspiration Fund (IAF) and SIDBI Make In India Loan For Enterprises (SMILE) scheme with an investment size of Rs 10,000 crore.