Mumbai-based venture capital firm BLinC Invest has marked the final close of BLinC Fund II, a SEBI-registered Category-II Alternative Investment Fund (AIF) at Rs 100 crore, the company said in a statement on May 11.
The venture capital firm said that it had received commitments from Indian and global investors, including HNIs (high networth individuals), Family Offices, Corporates and Institutional Investors. BLinC Invest also claimed that the funds had been oversubscribed. Fund sponsors have committed over 8% of the fund against the regulatory requirement of 2.5%, the venture capital firm said.
BLinC Fund II is BLinC Invest’s second early-stage venture capital fund and it will be deployed across edtech and fintech startups in the country, the venture capital firm said. BLinC had launched the fund in April last year and had marked the first close of the fund at Rs 30 crore. First close of a fund is a fundraising landmark for venture capital firms after which they start investing.
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BLinC has made one investment so far in insurtech platform Vital through the fund and the venture capital firm said that it would look to invest in early-stage edtech and fintech companies in India that have a product ready and have a revenue of more than Rs 2 crore with validation from multiple markets. BLinC said that the firms must also show evidence of market potential and an ability to have global dominance. BLinC said it would look to invest in companies only catering to a market potential of more than $1 billion.
“The idea is that startups need to have a clear path to profitability. For some, it may take one year, for some it may take three years, but a clear path to profitability has to be there,” said Amit Ratanpal, Managing Director, BLinC Invest.
“Because if there is no path to profitability, then I don’t know the extent to which the investor will keep on funding money. One day you will raise $2 million, one day you will raise $5 million and even $10 million, but this will end someday, and I don't know what will happen. You’ve seen some of these stocks that got listed last year (unicorns). The fact that they're getting a beating in the listed market is a very good example as people are asking you what your profit is,” Ratanpal added.
BLinC Invest said it would look to make five to seven investments between Rs 10 crore and Rs 20 crore through BLinC Fund II. The fund would take a ‘co-founder approach’ with its investments and work very closely with its portfolio companies, the venture capital firm said.
The fund will also leverage the rich industry experience of its advisory board to help its portfolio companies to make informed investment and management decisions, BLinC Invest said.The venture capital firm’s team has an experience of as many as 60 years in the industry, BLinC said, adding that it had invested over Rs 300 crore in 25 companies to date.BLinC said it had also founded eight businesses with eight prominent exits.