Indian VC 3one4 Capital floats new $50m fund, hits first close at $21m

3one4 Capital Team

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.

Also Read:

Indian VC 3one4 Capital raises $39m for second fund, exceeds initial target

Exclusive: 3one4 Capital plans to cut bigger cheques, eyes new sectors with second fund

DSG Consumer Partners seeks to raise $50m for third fund

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.