The fund, which has backed startups such as TrulyMadly, Otipy, AFK Gaming, iKure and Fabheads among others through its angel investing platform, will look to invest in 15-20 startups through pre-Series A to Series B funding rounds.
“The check sizes will range from $2 million to $10 million,” said Ankur Mittal, cofounder, IPV. IPV is an early stage angel investing platform, which provides both monetary and non-monetary support to the startups,
The fund, which is expecting a nod from the regulator, will look to invest in companies across sectors such as consumer tech, edtech, healthtech, fintech, B2B SaaS (Software as a service), social and content commerce, he added.
The fund will be raised from the firm’s existing individual investors, domestic and family offices from India, Middle East and UK, said Mitesh Shah, cofounder, IPV.
The rupee fund is expected to see its first close $20 million by end of July 2022, Shah added.
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“We are India’s largest CXO platform and the companies we have built in the last few years speaks for the value we bring to the table,” said Mittal.
IPV has so far invested in 110 startups, of which it has secured full exits from nine investments and partial exits from around 12. “There have been 28 follow-on rounds and, in a market, where in early stage investing has seen mortality rate of as high as 80%, we are at 4%,” Shah said. Some of the complete exits were from companies such as BharatPe, Hobspace, Fitso, Qbera and Pedagogy, among others.
“Physis Capital will also identify multi-baggers from its IPV portfolio and back them from Physis Capital. Up to 50% of the fund size will be deployed in backing proven winners from the IPV portfolio,” Shah said.
Founded in 2019, IPV also has an angel fund-First Port Capital.
As domestic investors are coming of age it is now competing with global funds to get a meaningful share of the growing deals in the segment. India focused funds are finding it easier to raise newer and larger pools of capital leading. India-focused funds such as Mela Ventures, Trifecta Capital, A91 Partners, Stellaris, Chiratae, 3one4 Capital, Alteria Capital, IIFL PE and Edelweiss among others have raised a large pool of capital from the local investors to back startups.
