Finvolve, a joint venture of India Accelerator and Finolutions, has closed its two maiden funds at a total corpus of ₹100 crore.
The two funds are SEBI-registered Category I – Alternative Investment Funds (AIF), each with a corpus of ₹50 crore.
While this fund focussed on early-growth stage companies to help them scale and expand, co-investing with other investors, the firm also announced the launch of two new funds, including a GIFT city, with an investment capacity of around ₹500 crore to widen its investment spectrum: accelerator, seed and scale
Finvolve has already invested in start-ups such as Matter, Stage, Advance Mobility and Zulu Defence.
These three funds will raise capital from HNIs, family offices and other limited partners. Finvolve will invest approximately $150K (₹1.24 crore) via the upcoming accelerator fund, between $5,00,000 and $1 million at the seed stage and $1 million –$3 million from the growth-stage fund to support more mature startups poised for expansion and potentially, public offerings.
Going forward, it will back start-ups in drone tech, space tech, clean energy and mobility and circular economy as well as social impact businesses and start-ups leveraging ONDC.
Comprehensive support
“It is a significant shift for us to evolve into a multi-stage fund. The initiative will provide comprehensive support to start-ups from ideation to IPO, ensuring they have the resources and expertise needed to succeed in a competitive global market,” said Apoorva Vora, cofounder, Finvolve.
Early-stage investments have become the primary focus area for new funds, given the emergence of new categories of business, particularly in deeptech segments such as AI, semiconductor manufacturing, dronetech and spacetech.
The pre-seed Accelerator fund will leverage India Accelerator’s strength in building the early stage start-ups and shall be the first institutional investor in the selected startups while Scale fund will invest in startups demonstrating significant traction and typically profitable companies.