Indian early-stage venture capital firm WaterBridge Ventures is looking to raise around $75-100 million for its second fund, according to industry sources.
Early last year, the Delhi-based investment firm had made the final close of its maiden fund at $30 million (about Rs 200 crore).
WaterBridge was founded by private equity veteran Manish Kheterpal in 2015, with the aim of investing in early-stage startups. It has invested in around 14 companies so far, including online real money gaming firm 9stacks, fintech startup Ziploan, consumer medical financing company letsMD, and business intelligence solutions provider Dataweave, among others.
WestBridge declined to comment on its fundraising plans.
Last year, it scored its first exit from online education startup Unacademy after selling its stake in the Bengaluru-based startup to Sequoia Capital, SAIF Partners and Nexus Venture Partners. WaterBridge is reported to have earned internal returns of close to 150 per cent and reaped five times its investment in the company. It had invested $1 million in the company in 2016.
A number of India-focused early-stage investors are in the market to raise funds, including Blume Ventures, India Quotient, Fireside Ventures, Ankur Capital and Unitus Ventures.
DEALSTREETASIA recently reported that India and Southeast Asia-focused early-stage investment firm DSG Consumer Partners is seeking to raise around $50 million for its third venture capital fund. Bengaluru-based investor 3one4 Capital is likely to hit the markets for another new fund, close on the heels of its recently announced $50-million growth fund.
Many venture capital firms have reached major milestones in their fundraising efforts recently. Last year, Sequoia Capital India closed its sixth fund at $695 million targeting early- and growth-stage investments across India and Southeast Asia (SEA), while Matrix Partners raked in over $300 million for its latest fund.
According to a recent Preqin report, a record 125 India-based funds are in the market as of January 2019, seeking to raise a giant total of $18 billion from investors. Last year, 26 funds secured $3.3 billion in aggregate commitments.
“This growth has accelerated since 2015, spurred by strong fund-raising momentum: 2015 set a fund-raising record for the country, only for 2017 to surpass it, and annual capital totals have exceeded $2 billion in the past four years,” the report added.
Fundraising has been spurred by a virtuous cycle of strong distributions from PE and VC funds driving investor appetite and reallocations. India-based PE and VC funds have returned more capital to investors than they called up in each year since 2014.