With a green shoe option of up to $125 million, Capria Ventures India Fund III will allocate 25% of its capital for late-stage investments in standout companies from the firm's portfolio, allowing for early exits for investors.

The global south-focused venture capital firm Capria Ventures has launched its $100-million Capria India Fund III, according to a senior executive. The fund, which is structured as a master-feeder investment, will see participation from both Indian and global investors.

It has also included a greenshoe option of up to $125 million. There will be 25-30 startups across seed and pre-Series A rounds, with the average cheque size ranging from $500,000 to $2 million. The fund will support businesses aimed at growing the Indian middle class across HRtech, fintech, SaaS, and climate sectors. Investments in the manufacturing, agritech, and business-to-business sectors will be assessed by Capria.

Capria plans to allocate 25% of the new fund to follow-on investments in portfolio companies from its previous funds to take advantage of late-stage opportunities and deliver earlier returns to its limited partners.

We will not only invest in new companies, but we will also invest in late-stage companies from our predecessor funds to return capital at high IRRs. There is a problem with early exits in India, even though the ratio of total value to invested capital is healthy. The portfolio from previous funds gives us a strong foundation to tackle that, says Surya Mantha, managing partner at Capria Ventures.