Expertise-focused funding agency Filter Capital has efficiently closed its first fund Filter Capital India Fund I with a complete corpus of Rs 800 crore. In keeping with the corporate, 60 per cent of the capital dedication got here from home institutional traders and household workplaces together with HDFC Fund of Funds, SIDBI, SRI Fund, Oister World, DSP household workplace, Akash Prakash (founding father of Amansa Capital), and Harsh Jain (CEO of Dream11). The remaining 40 per cent dedication was from worldwide traders.
Nitin Nayar, Co-founder and Managing Director at Filter Capital informed FE Aspire that the fundraising stands out notably amongst first-time home funds with a know-how focus over the previous two to a few years.
“Our view has all the time been that with a Rs 700 – 1,000 crore corpus, we might have the ability to efficiently execute the funding technique of main growth-stage rounds in technology-led companies in India. We’re happy with this final result, particularly contemplating the difficult funding surroundings,” mentioned Nayar – the previous India head at Warburg Pincus.
Specializing in SaaS, know-how companies, and technology-led companies throughout client, monetary and enterprise companies, Filter Capital has backed greater than 30 per cent of its corpus throughout 4 investments in SaaS, client know-how, and B2B companies — Capillary Applied sciences, bus mobility platform Chalo Mobility, e-commerce logistics companies agency LoadShare Networks, and healthcare enterprise SaaS firm THB.
“We sometimes enter on the Sequence B/C stage. By this time, there’s sufficient knowledge to reach at a standpoint on the long-term potential of the enterprise, however the enterprise itself has not but been rerated,” Sumit Sinha, Co-founder and Managing Director, Filter Capital informed FE Aspire.
This technique at Filter Capital is relevant by means of (increase and bust) cycles (of startup funding) and has not modified because the funding winter for Indian startups, Sinha mentioned.
Filter Capital’s typical test measurement is Rs 60-100 crore.
Indian startup ecosystem had recorded a drop throughout a number of development metrics in 2023 as traders grew extra cautious about spending and development with out a promising backside line and regarding valuations.
From $25.6 billion in 2022, the funding dropped to $8.3 billion in 2023 whereas funding rounds additionally declined to 1,133 in 2023 from 2,781 in 2022, FE Aspire had reported.
Whereas market cyclicality is in no way distinctive to the Indian startup ecosystem as India’s public markets have additionally been topic to cycles of each overexuberance and undue pessimism over the previous 20 years, Nayar anticipated periodic bubbles to proceed whether or not in non-public or public markets.
“We could also be one rate of interest minimize or know-how megatrend away from the subsequent wave of exuberance amongst traders and founders,” he added.
Filter Capital expects to have 8-10 corporations within the inaugural fund and is looking out for four-six extra corporations. The fund will doubtless be deployed over the subsequent two to a few years.
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