Chiratae Ventures, formerly known as IDG Ventures India, has so far raised $184 million for its fourth fund to invest in the country’s burgeoning startup ecosystem, as per a regularly filing.
The early-stage investor, headquartered in Bengaluru, has set the total target corpus for Chiratae Ventures International Fund IV at $275 million.
Founded in 2006 by Sudhir Sethi and TCM. Sundaram, IDG Ventures was rebranded as Chiratae Ventures in 2018, as part of its strategy to appeal more to Indian entrepreneurs.
The word Chiratae means ‘leopard’ in one of the Indian languages and was adopted by the firm to signify its focus on staying agile and sharp in the everchanging startup scenario, it had earlier mentioned in a statement. Chiratae Ventures invests in a gamut of sectors such as consumer, software, fintech, and healthtech.
It counts companies such as CureFit, and Firstcry in its portfolio. It also made an investment in e-commerce major Flipkart in 2014.
So far, the firm has clocked as many as 14 exits from its portfolio firms, according to its website.
Chiratae had launched its first fund with a corpus of $150 million in 2007, months before the collapse of Lehman Brothers brought down the world’s financial system. The fund had then bagged investments from US-based media, data and marketing firm IDG Inc.
Thereafter, it floated its second fund at $95 million in 2013, and its third at $208 million in 2017.
Late last year, Chiratae made headlines when it roped in International Finance Corporation, a part of the World Bank Group, as one of the lead investors for its fourth fund. Its other significant investor includes the Small Industries Development Bank of India (Sidbi).
Chiratae Ventures, which typically invests at the seed and Series A stages in startups, competes with investors such as Accel Partners, SAIF Partners, and Kalaari Capital in the country.
Its fundraising development comes at a time when overall investment sentiments amidst the COVID-19 pandemic market remain tepid.
Data available with research firm Venture Intelligence shows funds raised by investment firms in India recorded a steep 77 per cent year-on-year decline in the first half of this year as LPs tightened their purse strings amidst a hazy outlook for business in the country.
However, those who have been successful in raising capital are Lightspeed Venture Partners, technology-focused venture capital fund Iron Pillar, and Blue Ashva Capital.