Gruhas, Collective Artists launch fund for consumer firms
MUMBAI : India-focused venture capital fund Gruhas, backed by Nikhil Kamath, and creator marketplace Collective Artists Network have launched Gruhas Collective Consumer Fund (GCCF) to back emerging consumer-focussed companies. GCCF will raise and deploy ₹150 crore initially, with both Gruhas and Collective Artists contributing an equal amount to the fund, and subsequently securing additional fund from external sources. The fund will seek to sustain an average deal size of about ₹8 crore ($1 million) each.
Nikhil Kamath, co-founder, Gruhas, highlighted the collaborative nature of the fund, saying: “This is the very beginning and, initially, we will raise and deploy about ₹150 crore. It will likely scale significantly with time. It’s not a proprietary fund.
Both partners will invest equal capital, and we will also have third-party capital, which we will be deploying." It will primarily focus on identifying, mentoring and investing in promising startups and creators from diverse consumer industry segments. Vijay Subramaniam, group chief executive and founder, Collective Artists Network, said the first five companies have been selected from wellness, beverages, fashion, lifestyle, hospitality and mothercare sectors. “The broad idea is to invest in addressable consumer space.
The purpose is to power overall consumption. So, if there is a business, which has the right fundamentals, we are happy to look at it," he added. A little over year ago, when Subramaniam met Kamath the conversation was around connecting India’s Silicon Valley (Bangaluru) and the entertainment capital Mumbai.
“If you see there is no organized connection between media and entertainment business with venture capital. It has never happened. We shook hands on
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