Bengaluru, NFAPost: Amid growing funding winter, Bengaluru-headquartered venture capital firm 3one4 Capital raised $200 million as their fourth fund as part of their efforts to invest in another set of startups.
According to 3one4 Capital Cofounder Pranav Pai, the fund was oversubscribed to $250 million but the firm is accepting only $200 million to keep itself lean and disciplined.
“We are known to give good returns. Our performance has been benchmarked among the best leading performing funds in the space. So we asked ourselves the hard questions, can we continue our performance with a larger fund size? Do we even need that much capital for the early-stage?” said 3one4 Capital Cofounder Pranav Pai.
The current fund is the sixth overall for 3one4 Capital and the firm is very careful in funding companies. 3one4 Capital decision to limit the fund is part of its strategy to keep it a unique institution in funding arena.
All the systemically important Indian banks, and the top five local banks by market cap overall have invested in the new fund. Eight of the top 10 mutual fund operators are also LPs in the new fund. Also, leading global endowments, sovereigns and insurance companies have joined as LPs.
3one4, which focuses largely on early-stage and in sectors including direct-to-consumer tech, media and content, fintech, deep technology and SaaS and enterprise automation, today manages about $750 million in AUM.
The company’s portfolio includes HR platform Darwinbox, business-to-business focused neobank Open, consumer-focused neobank Jupiter, Licious, a direct-to-consumer brand that sells meat, local social networks Koo and Lokal, entertainment service Kuku FM, fintech Raise Financial, and gaming firm Loco.
(With inputs from TechCrunch)
