Exclusive: India Quotient to invest in 25 startups through its new $50m fund

Prerna Bhutani, Partner, India Quotient

Early stage-investor India Quotient is looking to invest seed capital in around 25 startups through its new fund, which is targeted to reach its first close by October.

The target corpus for the new fund, which will be the Mumbai-based investors’ third vehicle, is around $50 million going to $80 million with a greenshoe option, Prerna Bhutani, Partner, India Quotient, said in an interaction.

“The fund will invest in 25 startups in seed rounds of  $300,000-500,000 and follow on in the subsequent rounds. The fund would target a ownership of around 20 per cent in each investment,” she said.

The third fund will also make small investments of under $100,000 via its IQ snipers accelerator program, which was launched last year.

The new vehicle has started collecting commitments and a large part of the first close commitments from its existing LPs, mostly comprising of leading entrepreneurs of India. SIDBI was an investor in the first 2 funds and is expected to be a large investor in the current fund also, said Bhutani.

It is also looking to raise a part of the funds from overseas investors.

Founded in 2012, India Quotient has raised two funds so far, the last of which was closed at $16 million that was mostly raised from HNIs. Its portfolio includes around 30 startups such as ShareChat, LendingKart, HolaChef, Roposo and PrettySecrets.

Last year, the fund made a couple of exits with Momoe Technologies getting acquired by e-commerce firm ShopClues and on-demand beauty services provider Belita bought out by Enrich Salon.

Founders Anand Lunia and Madhukar Sinha will be the general partners, while Bhutani, Gagan Goyal, the latest addition to India Quotient, will form the investment team.

“It would invest across sectors with a focus on fintech, social media, online brands and niche marketplaces. The fund would also invest in smart devices in healthcare and edutainment,” said Bhutani.

Even as the number of early-stage deals has declined in the first half of 2017, the dry powder for investment is piling up. Earlier this year, tech-focused venture capital firm Stellaris Venture Partners marked the first close of their $100 million fund at $50 million in January.

Indian Angel Network, one of the largest angel networks in Asia, also recently marked the first close of its maiden fund at Rs 175 crore ($27.3 million). The fund has a target of Rs 350 crore ($55 million). Another early-stage investor pi Ventures also announced the first close of its $30 million fund at $13 million.

Also Read:

Exclusive: India Quotient plans sub-$100m third fund in early 2017, says Anand Lunia

India Quotient targets first close of new fund at $30m by June

Exclusive: Gone are the days of fancy offices, lavish team outings post funding: Prerna Bhutani, India Quotient

 

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.