IvyCap Ventures announces final close of third fund at Rs 2,100 cr

Fund will invest in 'high-growth companies with strong potential', says venture capital firm

IvyCap Ventures has closed its Fund III at Rs 2,100 crore to bring its total assets under management (AUM) to Rs 5,500 crore, said the early-stage venture capital (VC) firm on Tuesday.

The firm said it will use the fund to invest in 25 companies with an average starting investment amount of Rs 30-50 crore each. As much as 20 per cent of the fund will be invested in existing portfolio companies where IvyCap will act as a co-investor when those businesses are raising their next rounds.

The third fund’s limited partners (LPs) include Indian institutions, the Indian Institute of Technology Alumni Trust and family offices. Close to 60 per cent of the funds have come from the existing investors of IvyCap Ventures in Funds I and II.

 

Separately, Rs 100 crore has been earmarked for investment in seed-stage companies through a separate team leveraging the IvyCamp platform and collaborating with various partners such as Indian Institutes of Technology, Indian Institutes of Management, incubation centres, accelerators, corporates, and other platforms.

“Overall, the fund will focus on high-growth companies across sectors with strong potential, scalable business models, and solid entrepreneurs offering differentiated value propositions,” the firm said in a statement.

Around 40 per cent of Fund III’s corpus has been invested in various companies, including Celsius, Agraga, Eggoz, ZestIot, Snitch, Beatoven.ai, and Dhruva Space. It has made follow-on investments from its previous funds in companies like LendBox, Miko, Biryani By Kilo, BlueStone, and others.

“We have always believed in the potential of domestic capital and feel fortunate for the invaluable backing of India’s leading institutional investors across all funds,” said Vikram Gupta, founder and managing partner at IvyCap Ventures.

IvyCap Ventures said it has achieved significant cash returns for its investors in previous funds. Fund I has delivered close to a threefold Distribution of Cash to Paid-in Capital (DPI), while Fund II has seen a 0.4-fold DPI, with most exits occurring through mergers and acquisitions. These include companies like Clovia, Sokrati, Pharmarack, and Aujas.

Fund I realised a Rs 330 crore exit, with a 22-fold return on Purplle, an online beauty products company.

IvyCap’s portfolio includes approximately 50 companies across sectors including HealthTech, ConsumerTech, DeepTech (Software as a Service, Artificial Intelligence/Machine Learning, Internet of Things), FinTech, EdTech, and emerging sectors like AgriTech and SpaceTech.