Indian VC firm Prime Venture Partners hits first close of $100m fourth fund

Photo: Bloomberg

Venture capital firm Prime Venture Partners on Wednesday announced that it has secured a $75 million first close of its $100-million fourth fund as it looks at newer areas for investment.

The investors or limited partners in the latest fund include the International Finance Corporation (IFC), a part of the World Bank Group, a top-tier university endowment, several returning family offices and institutions, and numerous global technology entrepreneurs from across the US and Southeast Asia, Prime Venture said in a statement.

In addition to its existing focus areas of fintech, edtech, healthtech, consumer internet, and global SaaS, the firm expects to expand into new areas, including decentralised finance (DeFi)/crypto, electric vehicles, and gaming infrastructure platforms, it added.

Prime Venture Partners was started by Acharya and Sanjay Swamy in 2012. In 2015, Amit Somani joined as a partner. The firm is now looking to expand its leadership team by adding a fourth partner.

“While the last decade was laying the foundation, the next decade is going to be spectacular as we witness the transformation of India to a digital superpower. We’re privileged to partner with some of the finest entrepreneurs in India and are super excited to work with many more founders of category-creating technology startups in the coming years,” said Sanjay Swamy, managing partner, Prime Venture Partners.

Prime Venture had raised $72 million for its third fund in 2018, $46 million for the second fund in 2015, and $8 million for the first fund in 2012. From the first three funds, the company has invested in about 32 companies across sectors such as fintech, healthcare, SaaS, education and logistics, the firm said.

While most of Prime’s portfolio companies are focused on the booming digital India opportunity, the firm also has several companies that target the US, middle-east and other international markets, or that initially start in India and later expand to other geographies.

Some of its portfolio companies include interactive learning startup Quizziz, security solutions provider MyGate, healthtech startup MFine, remote Patient Monitoring platform Dozee, and neobank NiYO.

Despite the pandemic, several funds in the country have either raised money or are there in the market to do so.

Last week, financial services firm Avendus achieved the first close of its Future Leaders Fund II with aggregate commitments of about $78 million (Rs584 crore).

Earlier this month, early-stage venture capital firm Stellaris Venture Partners has closed its second fund at $225 million supported by existing limited partners or backers as well as other global institutions. Venture debt firm Stride Ventures has also achieved the first close of its second fund — Stride Ventures India Fund II — securing commitments of $74 million of the targeted corpus of $135 million.

Last month, venture debt fund Trifecta Capital also raised $130 million in the first close of its maiden late-stage venture capital 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.