Venture Capital firm Matrix Partners India, which has been an early stage investor in Cab aggregator app Ola and classifieds portal Quikr, has raised Rs 730 crore to boost the corpus of its second fund. The firm will now have a total corpus of about $400 million in this fund, which was first set up in 2011. The additional corpus has been raised from existing investors or limited partners who provide the capital invested by venture firms. Another development happening at the same time is that Co-founder Rishi Navani is leaving the firm. Matrix Partners will now be managed by Co-founder Avnish Bajaj along with managing directors Vikram Vaidyanathan and Tarun Davda. Bajaj is a Harvard Business School alumnus who co-founded one of India’s earliest e-commerce ventures — Baazee. com, and later in 2006, set up Matrix Partners along with Navani.
Bajaj, who expects his fund to raise a third fund in the second half of 2017, says:
“The reason why we are not raising a full-fledged fund right now is because we are more focused right now on exits,”
Navani, who is moving out to set up a late-stage and public markets-focused investment fund, will continue to work with several portfolio companies of Matrix Partners. Matrix aims to invest across seed and Series-A deals while being selective about putting money in later-stage companies. It focus will be on online marketplaces, financial technology, software, logistics and healthcare technology, among others.
In the starting days, Matrix Partners invested in financial services, retail chains and healthcare delivery companies, where it backed half a dozen companies. But in the last four years or so, the focus has moved to consumer internet and technology deals. Bajaj adds:
“We will continue our consumer and healthcare investment franchisees going forward as well, but with a technology angle,”