IvyCap Ventures closes third fund, raises ₹2,100 crore
₹2,100 crore in capital, exceeding its initial target of ₹1,500 crore. Vikram Gupta, founder and managing partner of IvyCap Ventures, told Mint that the firm exercised a greenshoe option to raise additional capital. Gupta said that approximately 90% of the raised capital originated from domestic investors, with the remaining 10% primarily sourced from IIT alumni worldwide.
"60% of the capital is from institutional investors, 20% from IIT alumni, and another 20% from family offices, marking their inaugural participation," Gupta said, detailing the breakup. Of the funds raised, close to 60% came from existing investors of IvyCap Ventures in funds 1 and 2. With this close, the firm's assets under management (AUM) stood at ₹5,000 crore.
The fund plans to invest in about 25 companies at Series A, with an average initial investment ranging between ₹30 to 50 crore. “25 new companies with an average ticket of 50 crore, which takes about 1,250 crore. About 3% of the fund, which is ₹400 crore, goes as follow on rounds and 5% of the fund, which is ₹100 crore, goes into seed stage investments," said Gupta.
Currently, 40% of the third fund's corpus has been deployed in various companies, including Celcius, Agraga, Eggoz, ZestIot, Snitch, GradRight, Flexifyme, Beatoven.ai, and Dhruva Space. Notably, the fund has also made follow-on investments from its prior fund in companies such as LendBox, Miko, Biryani By Kilo, and BlueStone. While IvyCap Ventures traditionally focused on Series A investments, the third fund marks the firm's debut in seed-stage investments.
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