IvyCap Ventures, a Mumbai-based venture capital firm, has announced a new venture debt fund of ₹500 crore, which it plans to launch in the coming three months.
This marks the third fund from the VC firm. Previously, the firm had launched its first fund worth ₹240 crore in 2012 and a second fund worth ₹600 crore in 2015.
Commenting on the development, IvyCap Ventures founder and Managing Partner Vikram Gupta said,
While we are almost in the final stages of our Fund 2, we are also working on launching our own venture debt fund. We have set up the team and see a huge opportunity in this space of AIF (alternative investment fund) II category.
The newly announced fund will be used to invest in mid-stage startups which are looking for Series B or Series C funding. The ticket size will range from ₹20 crore to ₹25 crore.The venture debt fund will be raised entirely from domestic investors, including existing investors who have backed IvyCap’s first two funds.
Further, the firm has said that the fund will be raised entirely from domestic investors, including existing investors who have backed IvyCap’s first two funds.
The venture capital firm is currently focusing on ventures that are in early or growth stage, and have a highly scalable business model. The firm’s focused sectors include healthcare, education, food-based businesses, technology and e-commerce, among others.
Vikram Gupta says that the debt fund would help businesses showing current or future positive cash flows in the company. He says that the fund will be deployed in a manner where there are no conflicts with IvyCap equity investments.
IvyCap Ventures was founded in 2011 by Vikram Gupta, Norbert Fernandes and Vishal Gauri. It is focussed on early and growth-stage startups founded by alumni of premier institutions like IITs and IIMs.
The VC firm has invested in a number of Indian startups, including Purplle, Sokrati, Clovia, BlueStone, GrabOnRent, Taskbob, Ftcash, among others.