Venture firm Promaft Partners announces inaugural Rs 1,000 crore fund
Rs 1,000 crore, including a greenshoe option of Rs 200 crore.
A greenshoe option is a provision that allows a fund to raise more capital than originally targeted if investor interest exceeds initial expectation.
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“Product market fit (PMF) is often equated with growth in Indian startups, but it is much more dependent on things like resonance with the customer… Given our collective experience, we intend to identify firms with PMF well ahead of time and help them identify which metrics to concentrate on to achieve high-quality PMF,” Bahl told ET.
In their previous roles, Bahl and Avlani have led investments into firms including Swiggy, Paytm, BigBasket, XpressBees, TaxiForSure, VideoVerse and PharmEasy.
Promaft will invest in 10 to 12 firms under the first fund and will come onto the captable after a firm has found product market fit, around series A or series B, Bahl said.
“I think this vintage (of startups) is just phenomenal… Say, in 2021, valuations were unreasonable and entrepreneurs needed to raise much more frequently, which meant they had to use short-term
