IDG Ventures set to launch $200-mn fund

Fund to focus primarily on Series A/B investments in technology and tech-enabled companies

IDG Ventures India is planning to launch a new $200 million fund, in which International Finance Corporation is also planning to invest around $20 million.

IDG Ventures India is an India-focused technology venture capital fund. The fund, whose advisors include Ratan Tata and Kris Gopalakrishnan, among others, is part of IDG Ventures, a global network of technology venture funds with more than $4 billion under management. 

The fund is based in Mauritius and will make investments in companies in India or with a significant presence in India. It seeks to focus primarily on Series A/B investments with selective seed and later stage investments in technology and technology enabled companies in India across consumer internet, software, health-tech and fin-tech sectors.

In the current fund, IFC said it will be supporting over 40 early-stage Indian companies to grow and gain access to international capital markets.

"Access to equity is difficult for asset light businesses such as technology firms. IFC's commitment would provide the necessary patient capital to support and grow such businesses," said IFC.

IFC's presence in the fund as a potential co-investment partner/ follow-on investor through its Venture Capital team, will provide the fund manager and its portfolio companies additional growth capital.

"IFC's presence in Fund III would potentially open Fund IV to a new and diversified investor base and signal confidence among new investors who would seek global best practices in the Fund," added the investment firm.

The fund has appointed Leopard Capital Advisors Co. Ltd as its investment advisor to provide it with non-binding and non-exclusive advice on investment and divestment. The Fund's Investment Advisor is based in Mauritius.

The fund's lead investor and sponsor is the International Data Group (IDG), the world's largest IT media company. IDG Ventures has over 200 investee companies and 10 offices across Asia and North America.

The funds affiliated with IDG VI have invested in over 60 early stage companies in India since 2007. These Funds have supported, mentored and grew many of those to become regional and global brands.