Bengaluru-based venture capital firm 3one4 Capital has launched a new opportunity fund, 3one4 Capital – Continuum I, with a target of Rs 350 crore ($50 million).
According to an official statement, the fund has already hit the first close with commitments worth Rs 150 crore ($21 million).
3one4 Capital was founded in 2015 by Pranav Pai and Siddarth Pai, sons of TV Mohandas Pai, a former senior executive at Infosys Ltd and an active angel investor. It launched its first fund in early 2016 with a corpus of Rs 100 crore. Early last year, it closed its second fund with commitments of Rs 250 crore ($39 million), surpassing its initial target of Rs 150 crore.
Its previous investors include DSP Investments, Reliance Ventures, Infosys co-founder Kris Gopalakrishnan, Amansa Capital CEO Akash Prakash, AJ Capital CEO Abhinav Jhunjhunwala, and Infosys co-founder Nandan Nilekani’s family office, among others.
With the final close of this new fund and other initiatives in the pipeline, 3one4 Capital will manage a combined corpus of over Rs 750 crore ($100 million). The investment firm’s portfolio includes YourStory, Licious, Betterplace, ToneTag, DarwinBox, Faircent, Bugworks, Pocket Aces, and Tracxn.
With deeper pockets, the firm plans to cut bigger cheques. Continuum I will focus on Series B+ rounds of companies from the 3one4 Capital portfolio with cheque sizes between $3 million and $5 million, it said.
The fund’s focus areas include machine-driven actionable intelligence services for the enterprise, enterprise automation, ambient intelligence technologies, consumer products, fintech, media and multi-lingual content generation, and health.
While many of its existing LPs participated in the latest fund, the new LPs in the mix include top-tier institutions, including a large US endowment and leading Japanese corporation Sojitz Corporation, which also has plans to open a new office in Bengaluru, India.
These new LPs will explore co-investment opportunities in rounds raised by 3one4 Capital’s portfolio companies.
3one4 Capital is among a clutch of Indian venture capital firms that are out in the market to raise funds. DEALSTREETASIA had recently exclusively reported that India and Southeast Asia focused early-stage investment firm DSG Consumer Partners was seeking to raise around $50 million for its third venture capital fund.
Other India-focused early-stage investors in the market to raise funds include Blume Ventures, India Quotient, Fireside Ventures and Unitus Ventures.
Many venture capital firms have reached major milestones in their fundraising efforts recently, led by Sequoia Capital India which closed its sixth fund at $695 million targeting early- and growth-stage investments across India and Southeast Asia (SEA).
Another early-stage investor Sixth Sense Ventures closed its second fund at Rs 500 crore ($68 million) late last year, along with Matrix Partners that raked in over $300 million for its latest fund.
Endiya Partners is reportedly raising a Rs 500-crore ($68.5 million) fund while impact investor Aavishkaar is out to raise $300 million.