DSG Consumer Partners reaches first close of third vehicle at $30m

File photo: DSG Consumer Partners founder Deepak Shahdadpuri speaks at DEALSTREETASIA'S Indonesia PE-VC Summit 2019.

Singapore-headquartered venture capital firm DSG Consumer Partners (DSGCP), which is focused on India and Southeast Asia, on Monday announced the first close of its third fund with $30 million in committed capital.

Investors in the first close were primarily existing limited partners, including family offices and other institutional funds from Europe, Singapore and USA, the firm said in a statement.

DEALSTREETASIA had reported the launch of its third vehicle, DSG Consumer Partners III, about 10 days ago. The third fund, which is targeting to raise $50 million, will continue DSG’s strategy of seed and Series A investments in startups looking to build consumer brands focused on India and Southeast Asia, the company said.

“We expect to have a final close in June and most of the commitments have been, and will be, from existing investors as we continue to keep our flagship fund small and relevant to fit our early stage strategy,” Deepak Shahdadpuri, MD of DSG Consumer Partners, said.

Over the last six years, DSG has invested in a couple of consumer brands including OYO Rooms, Veeba, Epigamia Greek, Raw Pressery, Redmart, Chope, Mswipe, Eazdyiner, YouVit, SaladStop!, GOQii and Piccolo baby food. Its cheque sizes range from $100,000 to $1 million and it can potentially invest $1-5 million over the lifecycle of an investment.

The firm is said to have deployed almost the entire corpus of its $50-million second fund that was raised in 2017. DSG’s first fund had raised $12 million.

The fund, founded in 2012, counts Belgium-based Verlinvest, India-focused mid-market private equity firm Everstone Capital Advisors’ second fund, and Shanghai-based ClearVue Partners’ maiden fund among its investors.

Prior to Fund III, DSG had raised a total of $95 million. It has backed over 40 companies since 2013 and in six years has realised $60 million and distributed $46 million to its LPs via full or partial exits from OYO Rooms, Veeba, Redmart and Zipdial. DSG’s first fund raised in 2013 has a distribution to paid in capital (DPI) of 3.7x and gross IRR of 63.5 per cent, the firm said.

In addition to Fund III, DSG plans to raise a second annex fund, DSGCP Buildout II, to invest in the best companies from the existing portfolio as they raise Series B and beyond. DEALSTREETASIA had earlier reported that the VC firm was seeking to raise $40 million for the annex fund.

The annex funds would allow investors who want exposure to growth-stage companies to participate in a portfolio of curated deals instead of a blind pool. DSG’s first annex fund raised $20 million in 2017 and is fully invested in Mswipe, Veeba, Chope, Chai Point, Eazydiner, Hostmaker and others, the firm said.

The firm has also made two new hires, Hariharan Premkumar and Archit Vijoy, to strengthen its investment team. Premkumar previously worked with Peepul Capital, Veda Corporate Advisors, Rothschild Private Equity and Accenture, and is an IIM-Bangalore graduate.

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