You are here: Home » Finance » News » Others
Business Standard

Early-stage VC firm Inflexor aims to close Rs 500-crore fund by March

The proceeds will be invested in about 25 companies over the next few years

venture capital | Investment instruments

Press Trust of India  |  New Delhi 

Ontario Teachers' Pension Plan bets on PE, infrastructure in India
Representational image

Early-stage firm Inflexor Ventures aims to close its Rs 500-crore fund by March next year, and the proceeds will be invested in about 25 companies over the next few years, a top executive said.

Inflexor Technology Fund, which was set up by the founders of the erstwhile Parampara Fund, had made the first close of the Rs 500 crore fund in August this year, at Rs 230 crore.

Speaking to PTI, Inflexor Ventures Managing Partner Venkat Vallabhaneni said the latest fund is focussed on technologies that are making a deep impact on the society.

"Mostly, we invest in early-stage companies that are making some revenue and have customers. Generally, we enter with a Rs 5-7 crore cheque and after that we stay with the company through their growth," he said adding that there is a follow-on funding of up to Rs 15-20 crore based on performance, growth and capital requirements.

Vallabhaneni added that the latest fund will allocate around Rs 25 crore in financing over a period of three years.

Inflexor Technology Fund had recently announced its first investment in Steradian Semiconductors, a deep-tech startup that is developing 4D imaging radar solutions for Autonomous Vehicles with their patented and proprietary IP.

"The (latest) fund size is Rs 500 crore, of which we have already raised Rs 325 crore. It is from a combination of institutes and HNIs, and SBICap Ventures is an anchor investor and SIDBI has also participated. Hopefully Q1 (January-March), we will close the fund," he said.

The fund also has a green shoe option of Rs 200 crore.

Vallabhaneni explained that in the last 15 years, there has been lots of advancement in the consumer tech space but "winds are changing towards the enterprise sector as well".

He said the first fund of Rs 75 crore was deployed in 12 companies including firms like Atomberg, PlayShifu, Bellatrix Aerospace, Entropik Technologies and CloudSEK. Of these, Inflexor has exited one organisation.

"One of the reasons for the larger second fund is, we saw that outside our investment (in startups through fund I), about Rs 460-470 crore worth of funds flowed into these companies apart from our investment. If we had a bigger fund, we could have had a bigger exposure," he said.

Vallabhaneni said Inflexor Ventures is in discussions with multiple startups for investment, and will in 20-25 companies via the new fund.

"(About) 70 per cent of the Rs 500 crore will go to pre-series A, where we enter the company with Rs 5-7 crore and we will continue to increase our exposure over the next three years, so our exposure for each company would be Rs 25-30 crore," he said.

The rest (30 per cent) would be for mature companies (series A and beyond) and stay invested for 4-5 years, he added. Inflexor Technology Fund will primarily look to back startups working in the enterprise space including AR/VR, Big Data, Robotics, Cybersecurity, Blockchain, IoT, and other sectors.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 08 2020. 13:52 IST