The United States (US)-based global investment firm B Capital has closed its Growth Fund III at $2.1 billion. The fund will invest in growth-stage start-ups.
Prior to this, the company launched its Growth Fund II in June 2020, which had an overall corpus of $820 million. The latest fund has nearly doubled its size.
"We have been fortunate in a pretty challenging fundraising environment to have the support of our existing LPs (limited partners) and a handful of new large institutional investors,” Raj Ganguly, the co-founder and managing director, told the Economic Times (ET) in an interaction.
“And really the (thesis behind the) larger fund size for us was the opportunity we see in the market. Even though a lot of people were excited about tech in 2021, we actually felt like valuations were really at a peak at that point. Now in 2023, we think it's a much more favourable valuation environment,” he added.
In the coming 12 quarters, the fund plans to invest in 30 to 35 start-ups, including Indian companies. According to Ganguly, the fund will utilise a large corpus to back Indian start-ups.
“India has been an extremely resilient market over the past year while many of the tech markets in the West have seen a lot more volatility and liquidity issues. In the end, broadly, Southeast Asia has really benefited from some of that turmoil. So, we look forward to being even bigger investors in markets like India,” he added.
In July 2022, it raised $250 million for Ascent Fund–the company's early-stage investment vehicle.