Multi-stage investment firm B Capital on January 19 announced it has raised about $2.1 billion cumulatively in its third venture growth fund and related companion funds (including a China-focused fund and a health tech fund). This is more than double the size of its second growth fund closed in 2020, coming at a time of prolonged funding winter especially hitting the growth and late stages.
The firm’s last growth stage fundraise was in June 2020, when it raised $820 million.
B Capital will be using the funds to invest in startups around enterprise, fintech, healthtech, Software-as-a-service (SaaS) and cybersecurity segments. Geographically, the fund is focused on the US, Asia, Southeast Asia and India. The average cheque size will be around $40-50 million, though as an investing firm, B Capital writes cheques of anywhere between $10-100 million, Raj Ganguly, co-founder and managing partner, B Capital told Moneycontrol.
Some of B Capital’s prominent India bets include BYJU’s, Meesho, PharmEasy, BlackBuck, CoinDCX, Fi, MSwipe, and Bizongo to name a few.
“This being a growth fund will complement our venture fund. So Growth fund will be used to invest in start-ups from Series B to pre-IPO stages. We look to back founders over multiple rounds. Our strategy is to bring capital, expertise and networks to help these companies grow and scale,” Ganguly said.
He added, “Despite the slowdown in global markets, India continues to remain resilient. We are global investors looking at global markets, headquartered in the US and Asia. We don’t look at China, India or the US as separate markets, this enables us to help existing portfolio companies with their global expansion plans.”
Eduardo Saverin, Co-Founder, Managing Partner at B Capital said, “Growth Fund III’s portfolio includes companies that are transforming their respective industries and generating meaningful impact. Our strategic partnership with Boston Consulting Group (BCG) and strong on-the-ground presence in key geographies enable us to provide our portfolio companies with targeted insights and expert advice. This multi-faceted, forward-thinking strategy lays a foundation for consistent portfolio company growth and firm success.”
“Since its inception, B Capital has been committed to investing in cutting-edge technology companies,” he added.
“Our emphasis on value-add investing, supported by our platform advisors and strategic partnership with BCG, enables us to accelerate business development and growth across our portfolio,” Ganguly said.
Earlier this year, B Capital had also announced a $250-million Ascent Fund II focused on early-stage bets. Its India and Southeast Asia head, Karan Mohla, in an interview with Moneycontrol said that the fund will have a specific focus on enterprise, SaaS and B2B, healthtech, Fintech, logistics and mobility, and transportation which will help industries grow.
B Capital was founded in 2015 by Ganguly and Saverin. It is also led by Howard Morgan and Sheila Patel. The firm currently has about $6.3 billion in assets under management across multiple funds starting from seed to late-stage venture growth investments.
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