Dream Incubator, which has already made a couple of investments in the country, plans to launch the India-specific fund in March. As per the news report, the fund will operate for a maximum of 10 years and will focus on smartphone-based entertainment fields such as games, music and video.
Dream Incubator is a strategic consulting and business development firm primarily working with Japanese corporate clients and governmental institutions. It provides both capital and professional services to next-generation companies to support their growth and expansion, while also operating their own businesses as well.
In a recent interview to Mint, Munehiko Eto, manager at the Tokyo-based Dream Incubator said that the firm has already invested in two fintech companies and has recently committed to investing in one more fintech company in India. It is seeking opportunities in mobile gaming, fintech, healthcare tech and digital media, with 10 opportunities on its investment shortlist now.
It was reported earlier this week that Dream Incubator had participated in a $3-million funding round in Mumbai-based Baldor Technologies Pvt Ltd that runs IDfy.com. The round was also joined by venture capital firm New Enterprise Associates and NB Ventures, among others.
According to the Nikkei report, Japanese mobile game company Akatsuki has agreed to invest in the India-focused fund. Dream Incubator is also reaching out to other Japanese financial, information technology and entertainment companies to participate in the upcoming fund.
In 2015, Dream Incubator had announced plans to launch a $100-million DIAIF Fund II, which was to focus on the India and the Southeast Asian (SEA) markets. However, it is not clear if the plans for the fund materialised. In 2016, the investment firm established a DI India Liaison Office in Mumbai, India.
Japanese investors have been keen investors in the Indian market, led by giant SoftBank which has pumped in billions of dollars in India last year. Other Japanese investors investing in India include Digital Garage, Beenos, Beenext and Spiral Ventures, among others.