Matrix Partners India closes its fourth fund at $550m, exceeds target

Matrix Partners India closes its fourth fund at $550m, exceeds target

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Matrix Partners India, an early backer of ride aggregator Ola and payments startup Razorpay, on Thursday, announced that it has hit the final close of its fourth fund with over $550 million in commitments.

Matrix, which floated its fourth fund in June 2022, initially planned to raise $450 million. A day ago, DealStreetAsia reported that the venture capital firm had increased its fund size to $525 million as it looks to ramp up investments in India’s burgeoning startup ecosystem.

“With the new fund, Matrix Partners India will continue to follow its existing ‘founders first’ investment strategy of backing exceptional founders in their effort to build category-defining companies. The firm will continue to focus on seed, early and early growth stages across sectors and has already been investing from the new fund,” the firm said in a statement.

In addition to the fourth fund, Matrix Partners India is also looking to raise another sidecar fund of $14.75 million, according to an SEC filing.

Founded in 2006, Matrix Partners India invests in companies targeting the Indian consumer and enterprise market. It closed its third fund for India at $300 million in 2019. The VC invests in the seed, Series A, and Series B rounds. Its portfolio companies include Dailyhunt, Five Star Business Finance, OfBusiness, Ola, Ola Electric, OneCard, Oxyzo, Razorpay, Captain Fresh, Country Delight, and GoKwik, among others.

Among other venture capitalists that have raised capital this year, Nexus Venture Partners and Iron Pillar amassed $700 million and $129 million, respectively. Investors who are currently waiting in the wings to garner capital include prominent names such as Orios Venture Partners and Pavestone Capital.

Edited by: Padma Priya

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