Artha Group is looking to close a Rs 450-crore opportunity fund to back winners from its existing portfolio, a senior executive told ET.
The new vehicle, Artha Select Fund (ASF), includes a Rs 120-crore green shoe option and has secured commitments of more than Rs 100 crore from existing limited partners, or sponsors, of Artha Venture Fund (AVF).
ASF, led by Anirudh Damani, will invest in the growth rounds of companies backed by AVF and Artha India Ventures.
Mumbai-based Artha Group, the umbrella entity of ASF, has investments in over 100 startups across India, the United States, Israel, Africa, and the UK.
Oyo, Purplle, LeveragEdu, and Rapido, are some startups in its India portfolio.
In
June last year, AVF raised Rs 225 crore from family offices in the United States, United Arab Emirates, Israel, Russia, Morocco, and the Middle East, ultra-high net-worth individuals (UHNIs) and Small Industries Development Bank of India (SIDBI).
“We’ve effectively shown our LPs a lot of value creation. They understood the kind of deep involvement we have with our startups,” Damani said. “A large part of our team is for portfolio management, so they realise what we do for those companies, and therefore they come back and many of them have doubled down on that portfolio.”
He said that AVF has provided returns of 3.61x on invested capital (value or performance of an investment relative to its initial cost) and over 120% internal rate of return (IRR).
IRR is used in financial analysis to estimate the profitability of potential investments.
Artha Group has set up ASF with the intention of backing its category-winning startups in their follow-on rounds.
This winners-only fund will commit up to Rs 20 crore in the Series B round and an additional Rs 20 crore in the Series C round.
Artha intends to back 11-14 startups in their early-growth rounds through this vehicle.
AVF has shortlisted existing startups from its portfolio including peer-to-peer lending company LenDenClub, aerospace manufacturer Agnikul, and retail-as-a-service platform Daalchini.
Artha will announce its first close in November and is expecting to secure commitments for the entire fund by January next year.
The new vehicle, Artha Select Fund (ASF), includes a Rs 120-crore green shoe option and has secured commitments of more than Rs 100 crore from existing limited partners, or sponsors, of Artha Venture Fund (AVF).
ASF, led by Anirudh Damani, will invest in the growth rounds of companies backed by AVF and Artha India Ventures.
Mumbai-based Artha Group, the umbrella entity of ASF, has investments in over 100 startups across India, the United States, Israel, Africa, and the UK.
Oyo, Purplle, LeveragEdu, and Rapido, are some startups in its India portfolio.
In
June last year, AVF raised Rs 225 crore from family offices in the United States, United Arab Emirates, Israel, Russia, Morocco, and the Middle East, ultra-high net-worth individuals (UHNIs) and Small Industries Development Bank of India (SIDBI).
“We’ve effectively shown our LPs a lot of value creation. They understood the kind of deep involvement we have with our startups,” Damani said. “A large part of our team is for portfolio management, so they realise what we do for those companies, and therefore they come back and many of them have doubled down on that portfolio.”
He said that AVF has provided returns of 3.61x on invested capital (value or performance of an investment relative to its initial cost) and over 120% internal rate of return (IRR).
IRR is used in financial analysis to estimate the profitability of potential investments.
Artha Group has set up ASF with the intention of backing its category-winning startups in their follow-on rounds.
This winners-only fund will commit up to Rs 20 crore in the Series B round and an additional Rs 20 crore in the Series C round.
Artha intends to back 11-14 startups in their early-growth rounds through this vehicle.
AVF has shortlisted existing startups from its portfolio including peer-to-peer lending company LenDenClub, aerospace manufacturer Agnikul, and retail-as-a-service platform Daalchini.
Artha will announce its first close in November and is expecting to secure commitments for the entire fund by January next year.
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