Mumbai-based VC Iron Pillar raises USD 20 million for its first fund
The fund is also in talks to raise a Mauritius-domiciled investment vehicle apart from this fund, to take the total corpus to USD 100 million
May 08, 2017 / 12:55 PM IST
The Iron Pillar Fund which has invested in startups such as Bluestone and NowFloats has raised its maiden fund of USD 20 million and is in the process of raising a Mauritius-domiciled investment vehicle which, once closed is likely to take the total corpus to USD 100 million.
"In addition to the India fund, we are raising a Mauritius-domiciled investment vehicle which, once closed, is anticipated to take the total corpus to USD 100 million. We will invest in approximately 12 companies from the total corpus," Sameer Nath, managing partner of Iron Pillar, told Moneycontrol.com.
The Mumbai-based Iron Pillar is a venture capital firm focussed on mid or growth stage technology firms in India.
"That is a separate fund from the India fund, targeting the US and international investors. But will have the exact same strategy as the India fund. We are only investing in Indian technology companies, no other countries," he added.
Iron Pillar's cheque size ranges between USD 5-10 million.
The two investments made by Iron Pillar so far -- Bluestone and NowFloats -- has been through warehousing. Warehousing is a process that allows venture capital firms to invest in a startup even if they have exhausted their funds or are yet to raise a fund. This ensures that investors do not miss out on a good opportunity. Sometimes, the partners in a fund extend their personal money to float deals and there are instances when even the limited partners write cheques ahead of a formal fund close.
SIDBI, the apex financial institution for MSMEs and the IIFL Seed Fund have invested in the fund along with undisclosed family offices of high net individuals in the country.
“In addition to backing early stage funds, SIDBI is keen to help build the mid-stage ecosystem for venture capital in India by supporting funds like Iron Pillar investing in innovation led MSMEs,” said Ajay Kumar Kapur, deputy managing director of SIDBI.