IvyCap Ventures announces the Final Close of its Fund III at INR 2100 Crore, continuing its commitment to invest through the Alumni ecosystems
Mumbai April 30, 2024: IvyCap Ventures, India’s leading homegrown venture capital fund, announces the closure of its Fund III at INR 2100 crores. The Fund’s investors (limited partners) include the leading Indian institutions, the IIT Alumni Trust, and a few family offices. Close to 60% of the Funds have come from the existing investors of IvyCap Ventures in Funds 1 and 2. With this closing, the total Assets Under Management (AUM) of IvyCap Ventures has grown to INR 5000 crore ($600 million).
The Fund plans to invest in about 25 companies at Series A with an average starting investment amount of INR 30 to 50 crores. 20% of the Fund will be invested in the existing portfolio companies of IvyCap Ventures, where IvyCap Ventures will act as a co-investor when those companies are raising their next rounds and will not provide secondary funding to their previous Funds. Additionally, INR 100 crore has been earmarked for investment in seed-stage companies through a separate team leveraging the IvyCamp platform, collaborating with various partners such as IITs, IIMs, incubation centers, accelerators, corporates, and other platforms. Overall, the Fund will focus on high-growth companies across sectors with strong potential, scalable business models, and solid entrepreneurs offering differentiated value propositions. Currently, around 40% of the corpus has already been invested in various companies, including Celcius, Agraga, Eggoz, ZestIot, Snitch, GradRight, Flexifyme, Beatoven.ai, and Dhruva Space. Moreover, the Fund has made follow-on investments from its previous fund in companies like LendBox, Miko, Biryani By Kilo, BlueStone, and others.
IvyCap Ventures has achieved significant cash returns for its investors in previous funds. Fund 1 has delivered close to a 3X DPI (Distribution of Cash to Paid-in Capital), while Fund 2 has seen a 0.4X DPI, with most exits occurring through M&A. Notable examples include Clovia (Acquired by Reliance), Sokrati (Acquired by Dentsu International), Pharmarack (Acquired by a consortium of pharma companies including Sun Pharma and Cadilla Pharma), and Aujas (Acquired by NSEIT). Additionally, IvyCap Ventures Fund 1 realized an INR 330 crore exit, with a remarkable 22X return on Purplle, showcasing exceptional returns on its investments.
Speaking on the occasion, Vikram Gupta, Founder and Managing Partner, IvyCap Ventures, said, “We owe this achievement to the trust our investors have bestowed on us across our Funds. We are very fortunate to have an incredible team who have been with IvyCap Ventures along its journey. We are also grateful to our Advisory Board, for their unwavering support since the inception of IvyCap Ventures. We have always believed in the potential of domestic capital and feel fortunate for the invaluable backing of India’s leading institutional investors across all funds.”
IvyCap Ventures has believed in the power of the Alumni ecosystems of the leading educational institutions such as IITs, IIMs, BITS, and ISB. The Fund conceptualized the model of Endowment upon its founding in 2011, with a significant part of its Carried Interest marked for giving back to the Alma Maters of the Alumni supporting the Fund as investors and Mentors. Notably, the fund also helped create India’s first Endowment Fund at IIT Delhi which was launched by the honorable President of India at Rashtrapati Bhavan in October 2019.
Over time, IvyCap Ventures has built a diverse portfolio of approximately 50 companies across sectors including HealthTech, ConsumerTech, DeepTech (SaaS, AI/ML, IoT), FinTech, EdTech, and emerging sectors like AgriTech and SpaceTech. The firm’s investment approach focuses on identifying early-stage companies with unique business models and significant potential for growth and leadership in their respective markets. The core team at IvyCap Ventures, consisting of Vikram Gupta, Ashish Wadhwani, Vishal Gauri, and Anju Gupta, shares a wealth of experience dating back to their days at prestigious Indian Institutes of Technology (IITs). Their collective decades of expertise in venture capital, entrepreneurship, and business strategy form the foundation of IvyCap Ventures’ success.
Supported by an esteemed advisory board comprising luminaries such as Mr. Gopal Pillai, former Home Secretary of India and Chairman of IvyCap Ventures, Ashank Desai, Founder of Mastek Ltd, Ravi Dhariwal, Former CEO of Bennett Coleman & Co. Ltd, and Pradeep Gupta, Chairman & MD of Cyber Media Group, and many others, IvyCap Ventures has been guided towards the highest levels of corporate governance. These board members have been with IvyCap Ventures from the day of its inception. IvyCap Ventures is India’s first homegrown VC fund to have successfully created a dragon company.
Further, as a homegrown VC fund, it is proud to have IIT alumni as anchor investors and more than 25+ institutional investors investing across the funds. IvyCamp, an initiative of IvyCap Ventures, nurtures entrepreneurs into sustainable businesses through our Global Alumni Ecosystem. It is an Alumni-driven Engagement Platform where founders enhance skills, accelerate business growth, engage in corporate innovation, and connect with investors. We identify partners to build, test, market, and fund high-potential teams and solutions. In addition to financial metrics, IvyCap Ventures prioritizes entrepreneurs who demonstrate a deep understanding of their industry, strategic vision, and a commitment to ESG and SDG. Sustainability and corporate governance are integral aspects of IvyCap Ventures’ investment strategy, ensuring responsible growth and long-term success for its portfolio companies. One of IvyCap Ventures’ distinguishing factors is its mentorship program, which goes beyond mere investment to provide comprehensive support for the growth and success of its portfolio companies. Leveraging a mentor model that combines the expertise of corporate executives and successful founders, IvyCap Ventures offers invaluable guidance in execution, scale-up, and exit strategies.
Mr. Gupta emphasizes, “Our mentorship program is not just about investment; it’s about cultivating enduring partnerships that drive sustainable growth and innovation. We believe in empowering entrepreneurs with the knowledge, networks, and resources they need to thrive in a competitive market.”
As IvyCap Ventures embarks on the next phase of its journey, it remains steadfast in its mission to empower entrepreneurs, drive innovation, and create lasting value for investors and society at large. With Fund III poised to fuel the growth of India’s brightest start-ups, IvyCap Ventures looks forward to shaping the future of the Indian entrepreneurial landscape.
Disclaimer: IvyCap Ventures announces the Final Close of its Fund III at INR 2100 Crore