Venture Capital firm India Quotient raises $64 million from Domestic Investors & Family Offices
India Quotient, a seed-to-early-stage venture capital firm, has raised $64 million from domestic investors, including leading family offices, for its fourth fund.
Among the fund's investors are Flipkart cofounder Binny Bansal, Paytm founder Vijay Shekhar Sharma, and Makemytrip cofounder Deep Kalra. It is also in talks with foreign investors about the remaining $80 million in capital.
Anand Lunia, founding partner of India Quotient, told that due to increased interest from limited partners (LPs), who invest in venture capital funds, the total fund size could be increased to $90-$100 million. Some of the fund's limited partners, according to Lunia, are also investors in India Quotient's portfolio companies, such as ShareChat and Sugar Cosmetics, where it has taken partial exits.
“We have raised nearly 80% of the capital really fast. The top 10 family offices have put money in our fund. For the rest of the fund, we are looking at a couple of large cheques from investors in the US, Singapore, instead of several smaller investments,” says, Lunia.
“It would be oversubscribed given the ongoing discussions and we may have to increase the size but it will be less than $100 million as we want to remain a concept-stage investor,” he added.
According to him, India Quotient has also closed a $40 million Opportunities Fund, which is typically used to double down on the portfolio's best-performing companies.
India Quotient was founded in 2012 by Lunia and Madhukar Sinha. The first fund had a corpus of $6 million, while the next two had a corpus of $20 million and $60 million, respectively.
Gagan Goyal recently joined the fund as a general partner. Dinodia Capital Advisors' CEO, Pankaj Dinodia, has also joined the firm as the chair of its LP advisory committee. Dinodia is also the son-in-law of Pawan Munjal, the chairman, managing director, and CEO of Hero MotoCorp.
Lunia stated that he has already backed four startups from the new fund, one of which is Gaugau, a dairy farming startup. The new raise by India Quotient comes at a time when the pace of deal making in the early- and seed-stage phase has increased. Funds such as Sequoia's Surge, as well as other venture capitalists, are aggressively supporting young and idea-stage startups.
“We are looking beyond off-beat themes to stay ahead of others,” Lunia added.
The firm has returned to investors the principal amount of capital from its funds 1 and 2. It also took partial exits from portfolio companies such as ShareChat and Sugar Cosmetics.
It is said to have made a massive profit of more than 500 times its investment in ShareChat earlier this year when it raised $502 million at a valuation of slightly more than $2.1 billion. According to Lunia, it made a 50-times return on its initial investment from Sugar Cosmetics.
Among the fund's investors are Flipkart cofounder Binny Bansal, Paytm founder Vijay Shekhar Sharma, and Makemytrip cofounder Deep Kalra. It is also in talks with foreign investors about the remaining $80 million in capital.
Anand Lunia, founding partner of India Quotient, told that due to increased interest from limited partners (LPs), who invest in venture capital funds, the total fund size could be increased to $90-$100 million. Some of the fund's limited partners, according to Lunia, are also investors in India Quotient's portfolio companies, such as ShareChat and Sugar Cosmetics, where it has taken partial exits.
“We have raised nearly 80% of the capital really fast. The top 10 family offices have put money in our fund. For the rest of the fund, we are looking at a couple of large cheques from investors in the US, Singapore, instead of several smaller investments,” says, Lunia.
“It would be oversubscribed given the ongoing discussions and we may have to increase the size but it will be less than $100 million as we want to remain a concept-stage investor,” he added.
According to him, India Quotient has also closed a $40 million Opportunities Fund, which is typically used to double down on the portfolio's best-performing companies.
India Quotient was founded in 2012 by Lunia and Madhukar Sinha. The first fund had a corpus of $6 million, while the next two had a corpus of $20 million and $60 million, respectively.
Gagan Goyal recently joined the fund as a general partner. Dinodia Capital Advisors' CEO, Pankaj Dinodia, has also joined the firm as the chair of its LP advisory committee. Dinodia is also the son-in-law of Pawan Munjal, the chairman, managing director, and CEO of Hero MotoCorp.
Lunia stated that he has already backed four startups from the new fund, one of which is Gaugau, a dairy farming startup. The new raise by India Quotient comes at a time when the pace of deal making in the early- and seed-stage phase has increased. Funds such as Sequoia's Surge, as well as other venture capitalists, are aggressively supporting young and idea-stage startups.
“We are looking beyond off-beat themes to stay ahead of others,” Lunia added.
The firm has returned to investors the principal amount of capital from its funds 1 and 2. It also took partial exits from portfolio companies such as ShareChat and Sugar Cosmetics.
It is said to have made a massive profit of more than 500 times its investment in ShareChat earlier this year when it raised $502 million at a valuation of slightly more than $2.1 billion. According to Lunia, it made a 50-times return on its initial investment from Sugar Cosmetics.