IvyCap Ventures has announced the first close of its Fund 3 at ₹1,608 crore ($214 mn). IvyCap currently manages assets worth ₹3,200 crore ($425 mn). The fund is targeting to do its final close at ₹2,000 crore. However, looking at the demand and the fund strategy, it may increase the size to ₹2,500 crore.
Two-thirds of the Fund 3 has been raised from its existing investors. There are quite a few new Institutional Investors including banks, insurance companies and the government departments who have participated in the Fund. In addition, IvyCap for the first time has also raised its capital from many family offices.
IvyCap said that it currently manages a portfolio of over 30 companies and has already made successful exits in six companies including a partial exit in Purplle last year where its Fund 1 saw a 22x cash return for its investment. Fund 1 (₹240 crore/$40 mn) was launched in 2014 and invested in 10 companies while Fund 2 ₹535 crores/$80 mn) was launched in 2020 and invested in 23 companies. Some of the companies in the portfolio are Purplle, Clovia, BlueStone, Biryani by Kilo, Convosight, Miko, Elucidata, ftcash, and others. The recent exits that IvyCap made include Purplle, Pharmarack and Leixir. Recent investment in portfolio companies Miko and Biryani By Kilo have been made from Fund 3.
To focus in tech areas
With its Fund 3, IvyCap said it will continue to focus on areas like Consumertech, Deeptech, Healthtech, Fintech, SaaS and Edtech. The Fund will deploy an average of ₹30-₹40 crore as its first cheque in around 20-30 new Series A companies. In addition, the Fund will reserve around 20 per cent of the corpus for co-investing in its existing portfolio from Fund 2. The balance Funds will be reserved as follow on the entire portfolio.
Working through alumni from IITs, IIMs
Commenting on the close, Vikram Gupta, Founder and Managing Partner, IvyCap Ventures Advisors Pvt Ltd, said, “We have proven the model of working through the Alumni ecosystem of the IITs, IIMs and a few other top educational institutions of India. Our passion lies in building the Endowment ecosystems in India. We had conceptualised the Endowment Fund model through integration with an Alumni focused Venture Capital Fund in 2011. Our efforts led to the formation of India’s first Endowment Fund at IIT Delhi that was launched by the President of India in October 2019. This model was then replicated by IIM Ahmedabad and a few other IITs. Today we see a substantial alumni base of 500,000 from IITs and IIMs working very passionately with us.”
Started by Vikram Gupta in 2011, IvyCap built a venture capital model around the global IIT Alumni ecosystem with endowment at its core. It claims to be the first Indian VC Fund to have created a unique mentoring model through passionate Alumni mentors. Today IvyCap has over 65 core mentors with an additional 5,000 alumni in its inner circle of support. With every exit, the mentor trust receives a payout. Interestingly, so far 70 per cent of this payout has been given back by mentors for Endowment to their Alma Maters, it added.