[YS Exclusive] Anand Lunia's India Quotient Closes First Fund Sizing INR 25 Crore

16th Oct 2012
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Started in June this year by Anand Lunia, India Quotient began with a motive of funding pre-revenue early stage companies. Having 5 companies in their portfolio currently and with aggressive plans to follow, India Quotient has announced the close of its first fund raise amounting to INR 25 crores.

Anand, who previously was with Seedfund, started India Quotient with a firm motive has developed a credible reputation within the ecosystem and amongst startups. Talking about the fund, he informs us, “Most LPs are Indian Entrepreneurs or Global Entrepreneurs. And a few fund managers in their personal capacity.” And to bolster the team, Madhukar Sinha from Avishkaar fund has joined as a partner. Madhukar brings experience of investing in education, healthcare and consumer brands.

Detailing about the kind of companies India Quotient would be focusing on, Anand says, “We like consumer focused plays with a strong tech edge. The founders need to build a brand- not just focus on revenues. We see a great opportunity in retail services in areas of food, education, healthcare, finance, etc leveraging technology.” With likes of Jaydeep Barman, Founder of Faaso’s on board, they know how a brand can be built by leveraging internet, social media, etc. This has led to a quick development of the services brands. Educational content, SaaS and Mobile VAS are huge spaces. “Entrepreneurs should see where the incumbent leader is inefficient, and go after them. That is a battle we are excited to back,” informs Anand.

"Anand

Globally, there has been a rising skepticism over VC firms and the fund sizes have been dwindling. How hard was it for India Quotient? “A small fund is a different entity altogether and we knew that regular fund managers would have nothing to do with us. We conceptualized this fund for successful entrepreneurs and fund managers. Yes even with that audience, selling a risky fund in these times was tough. Most of the fund has been raised because people believe in our personal track record and our personal commitment,” confesses Anand.

Anand knew about this and hence initially started out with their own money. “I put the first 20% of the fund. Then we built a portfolio. And we raised money as if it were an angel round. That way I am pleased to say that we have raised a rather large angel round in just a few months,” shared Anand.

Talking about the road ahead, Anand concludes, “Our plans are simple. Build a great portfolio. Stick to our investment thesis, but be flexible on nuances. We will use the network of our investors, entrepreneurs and our own expertise to help these great product companies to become great organizations. We hope we will soon be able to think of another fund. But right now, we are much more kicked about investing.”

This is good news for the Indian Startup Ecosystem and we wish Anand and IndiaQuotient all the very best and would strive to bring you the latest updates from them. IQ is on the Investors' section on Yourstory PAGES, check it out. 

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