IvyCap Ventures Announced Raising Fund of ₹2,100 crore in Capital
IvyCap Ventures is an investor firm that has invested in startups like Purplle, Clovia, BlueStone and Biryani By Kilo.
IvyCap has reached the final close of its third fund at Rs 2,100 crore, more than two years after it announced the first close in February 2022.
The company has a portfolio of about 50 companies across sectors including HealthTech, ConsumerTech, DeepTech (SaaS, AI/ML, IoT), FinTech, EdTech, and emerging sectors like AgriTech and SpaceTech
IvyCap had marked the first close at Rs 1,608 crore and aimed to complete the final close of Rs 2,000-2,500 crore in the next few months as per Moneycontrol.
“We had done the Rs 1,600 crore announcement with letters of intent (LoIs) from investors. We started investing only around November (2022). In that sense, the total time taken to close is around 18 months,” said Vikram Gupta, founder and managing partner of IvyCap Ventures.
“We have 25 Indian institutional investors across the funds. Usually, it takes 2-3 months between an LoI and agreement, and sometimes it might take even longer. It might take six months to start using that capital,” he said.
Fund utilization in IvyVenture
The company plans to utilize the investment in about 25 companies at Series A, with an average initial investment ranging between ₹30 to 50 crore.
“25 new companies with an average ticket of 50 crore, which takes about 1,250 crore.
About 3% of the fund, which is ₹400 crore, goes as follow on rounds and 5% of the fund, which is ₹100 crore, goes into seed stage investments,” said Gupta.
Currently, 40% of the third fund’s corpus has been deployed in various companies, including Celcius, Agraga, Eggoz, ZestIot, Snitch, GradRight, Flexifyme, Beatoven.ai, and Dhruva Space.
While IvyCap Ventures traditionally focused on Series A investments, the third fund marks the firm’s debut in seed-stage investments.
There are about 125,000 registered startups in the country today and 25,000 of them are angel-funded and there are about 5,000 of them which have got some kind of a Series A funding, Gupta explained.
