3one4 Capital launches new $100M early-stage VC fund

Fund III, the third early-stage VC fund of 3one4 Capital, expects to increase the VC firm's capital under management to over Rs 1,550 crore.

3one4 Capital, the Bengaluru-headquartered early-stage venture capital (VC) firm founded by Pranav Pai and Siddarth Pai, on Wednesday announced the launch of its latest fund of Rs 750 crore ($100 million).

This will be 3one4 Capital’s third early-stage fund. So far, the VC firm has launched five funds, including seed-stage and opportunity funds.

The latest fund raise comes at the time of the COVID-19 pandemic, where raising capital has become a challenge, and for 3one4 Capital, it has been nine months since its last fund closure in December 2019.

The new 'Fund III' has already been subscribed over 40 percent of its targeted corpus with commitments from new and existing investors, 3one4 Capital said in a statement.

3one4 Capital founders: Pranav Pai (left) and Siddarth Pai

The fund has limited partners from both global and Indian investors which includes family offices, endowments, foundations, as well as corporate and financial institutional investors. According to the VC firm, Fund III will increase its capital under management to over Rs 1,550 crore. Prior to this, it stood at Rs 800 crore.

On the launch of the new fund, Pranav Pai, Managing Partner, 3one4 Capital said, “At 3one4 Capital, our objective is to work with Indian entrepreneurs and help build transformative companies. Our investor base now combines an intellectually-diverse and globally positioned pool of resources that provide a consistent competitive edge to the firm and its portfolio companies.”

Fund III will continue the VC firm’s strategy of building portfolios of 25-30 early-stage startups in each fund.

The fund will focus on segments such as SaaS and enterprise automation, direct-to-consumer, media and content, fintech, and deep technology. It will also cover sectors like health, machine-driven intelligent services, edtech, agritech, logistics and distribution, foodtech, mobility, Indic language-focused applications, and more.

The new fund will offer ticket sizes between $500,000 and $4 million with an active follow-on strategy.

Siddarth Pai, Managing Partner, 3one4 Capital, said, “The current paradigm shift has demanded the acceleration of disruptive business models and a rebalancing of the early-stage investment lens. With this new fund, 3one4 Capital is purpose-built to be deeply involved across the lifecycle of the next innovation engines from India.”

The VC firm has startups such as Licious, Yulu, Darwinbox, and Betterplace among its portfolio investee companies. According to 3one4 Capital, its portfolio companies have cumulatively raised over Rs 2,400 crore in follow-on funding.

Disclaimer: 3one4 Capital is an investor in YourStory

Edited by Suman Singh


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