Indian early-stage investment fund 3one4 Capital has raised $200 million to invest in a  set of Indian start-ups across sectors like fintech, SaaS (Software-as-a-Service), digital health and consumer. 

According to a report by the Economic Times (ET), the company has already invested in start-ups like Licious, neo bank Open, Jupiter and HRtech firm DarwinBox. 

Nearly 50 per cent of the total money came from multiple Indian banks and mutual funds. Apart from them, US university endowments, global sovereign funds, global corporations and insurance companies, and Indian family offices also joined the round. 

Prior to this, the company planned for a $150 million corpus for its third fund. 

The fund is managed by Pranav Pai, Siddarth Pai, Anurag Ramdasan, and Nruthya Mdappa. It invests between $0.5 to $5-6 million. ET reported that its median cheque size is about $1.5-3 million. 

Addressing the fundraising, Pai said, “We launched the process for Fund IV in January and within two-and-a-half months, we had a commitment of $250 million – which is more than our last fund. Given our approach and the performance in the early-stage space and the changes we are seeing in the ecosystem, we took the decision to keep it a $200 million fund."

Deployment has not been a challenge. We see about 7,000 firms and invest in 8-10 firms typically. In 2022, which was again a slow year for VCs, we still did eight-odd deals. We are still able to deploy enough capital. With the new fund, two-three investments are already in the pipeline,” Ramdasan added.