Blue Ashva Capital marked the first close of its maiden SME and startup focused fund in India with commitments of Rs 454 crore ($60 million), per an announcement.
It has roped in investors such as family offices and high net worth individuals to tap sectors including financial services, technology, healthcare, consumer, and manufacturing, among others.
The fund called Blue Ashva Sampada proposes to raise a sum of Rs 400 crore with a greenshoe option of Rs 200 crore. It has exercised a part of the greenshoe option at the initial close.
Blue Ashva Sampada Fund is registered with the Indian capital markets regulator SEBI as a category II alternative investment fund.
Through it, Blue Ashva Capital plans to clock investment via “equity, debt or any combination thereof,” per a statement.
The fund will also back professional-turn-entrepreneurs and partner with global companies to invest in India.
“SMEs and startups play a key role in fostering entrepreneurship and generating large scale livelihood opportunities. However, with so much gloom and doom around, most such businesses are currently going through challenging times,” said Satya Bansal, founder at Blue Ashva Capital, who was earlier the CEO of Barclays Private Bank in India. “There is a need now, more than ever, to support passionate founders with optimistic capital that is willing to bet on the long term,” he added.
The current fundraising activity signals how investors are increasingly betting big on the India growth story for the years to come.
Other fund managers who recently made headlines for shoring up capital from LPs are mid-stage, technology-focused venture capital fund Iron Pillar and Lightspeed Venture Partners. While Iron Pillar roped in US-based real estate firm Nitya Capital as an investor, Lightspeed Venture Partners bagged capital commitments worth up to $25 million for Lightspeed India Partners III from Illinois Municipal Retirement Fund.