Venture debt firm Innoven Capital India Fund has announced the first close of its new fund at Rs 740 crore from anchor investor Innoven Capital. It is a joint venture between Seviora, a wholly-owned subsidiary of Temasek, and United Overseas Bank.
The fund has a target corpus of Rs 1,000 crore with a greenshoe option to raise an additional Rs 1,000 crore.
Moneycontrol had first reported about Innoven's plans to raise a fund independently to provide debt to startups, in an attempt to do more deals and simplify its structure during a record startup funding boom in India.
So far, InnoVen India has operated as a non-banking finance company (NBFC) and is co-owned by Singaporean giant Temasek and United Overseas Bank.
While the new fund is stage and sector agnostic, the primary focus will be on sectors such as consumer internet, B2B commerce, enterprise software, fintech, health-tech, and logistics.
"India is now home to over 50 unicorns and the third-largest venture eco-system globally. Over the years, we have been fortunate to partner with some of the best founders and startups, including 17 that have achieved unicorn status. Our portfolio companies have raised over $20 billion of external capital and are now valued at over $70 billion. We are thankful to our anchor investors for demonstrating their confidence in the team and look forward to bringing in other investors as well," said Ashish Sharma, Managing Partner.
"With record fundraising and a vibrant IPO market, we expect a multi-fold increase in the formation of new start-ups, which will lead to higher demand for venture debt in the future. Venture debt is now an integral part of financing rounds and founders have a good appreciation of the product. We have built a robust pipeline and expect to start disbursing from the fund soon," said Sameer Mansukhani, Partner.
So far, InnoVen Capital has executed over 250 transactions with more than 180 startups disbursing $400 million to Indian start-ups. Some of the leading start-ups that were backed by the firm include names like Byju's, Swiggy, Oyo Rooms, Eruditus, DailyHunt, PharmEasy, Moglix, FirstCry, BharatPe, boAT, Licious, Blackbuck, and Rebel Foods, among others.