Chiratae eyes first close of $150m for fourth India-focused fund

Sudhir Sethi, Founder and Chairman, Chiratae Ventures, formerly IDG Ventures India

Venture capital fund Chiratae Ventures is set to hit the first close of its fourth India-focused fund at $150 million, two people aware of the development said, on condition of anonymity.

Chiratae, formerly IDG Ventures India, was founded in 2006 by Sudhir Sethi and T.C.M. Sundaram. It has backed startups such as Myntra, Lenskart, CureFit, and Policybazaar.

“So far, the fund has raised about 60% of its capital from Indian investors. While its existing limited partner (LP), the Small Industries Development Bank of India (Sidbi), has committed 150 crore, there has also been strong interest from industrial houses and local family offices,” said one of the persons mentioned above. A leading fast-moving consumer goods company is also in talks to invest in the fund. Chiratae aims to raise $275 million for its fourth fund, the person said. “While the share of domestic investments was close to 40% for its second and third fund, the fourth fund has seen much higher interest from Indian investors,” he said.

Chiratae had launched its first fund of $150 million in 2007 with investment from US-based media, data and marketing firm IDG Inc. It floated its $95 million second fund, IDG Ventures Fund II, in 2013. Its third fund closed in 2017 at $208 million with an investment of $20 million from International Finance Corp. (IFC), the World Bank’s private investment arm, as well as commitments from Cisco Investments, the corporate venture arm of American networking firm Cisco Inc., exceeding its initial target corpus of $200 million. Sidbi, too, had invested about 90 crore in the third fund.

Another investor participating in Chiratae’s latest fundraise is IFC. On 30 August, IFC said it would commit $20 million to the fourth fund.

For Indian venture capital funds, 2019 has been a busy year, with several fund managers out on the road to raise capital for their latest funds.

Early-stage investors Blume Ventures and India Quotient are expected to close their third funds at $80 million and $60 million, respectively, while consumer-focused fund A91 Partners closed a $350-million fund in July. Fireside Ventures is in the midst of raising its second $100-million fund.

Chiratae’s fundraise comes at a time when VC funding remains strong despite the overall slowdown in the Indian economy. In the first six months of 2019, VC investors deployed $4.7 billion across 346 deals, compared to $4.3 billion across 338 deals in the corresponding period of last year.

This article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.