Iron Pillar, a venture growth investor specializing in mid-stage technology investments in India, on Monday announced the successful closing of its $45 million top-up fund. This fund will top-up Iron Pillar Fund-I that held its final close in 2018 with capital commitments of $90 million.
The top-up fund will provide Iron Pillar additional capital to back specific Fund-I portfolio companies that are thriving even in the current market conditions. Fund-I has already made eight investments, with very strong portfolio performance to date, including one exit from SaaS company Now Floats, acquired by Reliance Jio in December 2019.
“The current crisis and its second-order effects have reduced the amount of growth capital available for tech companies in India,” said Anand Prasanna, Managing Partner, Iron Pillar. “While some may see this as a formidable challenge, we see this as a once in a lifetime opportunity for high-quality tech companies with strong market position, growth and gross margins to solidify their lead with efficient capital spend.”
The company said the top-up fund is a step to add fuel to its well-performing portfolio companies. With this new infusion of funds, Iron Pillar has added three global institutions, including 57 Stars LLC (a global alternatives investor) and one large European family office to its investor base.
“They have decided to back the Iron Pillar vision especially in the midst of the current pandemic. This is a validation for the strength of our portfolio, credentials of our team, and investment strategy,” said Mohanjit Jolly, Partner, Iron Pillar.
The Indian technology startup ecosystem has grown and changed dramatically in the last five years. From only six tech unicorns and barely any capital returned to investors in 2015, India now has 38 tech unicorns with a cumulative enterprise value of over $180 billion and more than $35 billion in the capital has been returned to investors.
Iron Pillar said that its team will continue to focus on providing growth capital to Indian founders who aspire to create world-class technology companies out of India. In addition to capital, Iron Pillar’s portfolio companies will get access to a global network of potential customers, strategic partners, senior tech executives, and capital sources as catalysts.