The IIT Alumni Trust-sponsored venture capital firm, IvyCap Ventures, is looking to increase the size of its second fund, IvyCap Trust Fund II, and make it double. This announcement comes as a sigh of relief during the ongoing fund crunch in the startup ecosystem. Based out of Mumbai, the fund is currently focused on early-to-mid-stage startups. It is in the process of raising its second investment vehicle of Rs 600 crore, and also looking to double that. Vikram Gupta, managing partner of IvyCap Ventures, cites increasing interest from institutional backers, and the performance of its portfolio companies as the reason to double the amount. He said in a statement-
“We have the option of not stopping at Rs 600 crore..We are seeing a lot of interest from investors based in Hong Kong, Singapore, Japan and from the US…A lot of our portfolio companies are growing at a tremendous pace, and there is a need for follow-on funding. Therefore, we decided to have a green shoe option of another Rs 600 crore,”
Gupta said the fund had already received hard and soft commitments of about Rs 450 crore for Fund-II, with an additional Rs 150 crore expected to be raised over the next 3-4 months. IvyCap announced the first close of Fund II at Rs 300 crore in April earlier this year. Apart from the IIT Alumni Trust, the fund currently counts a number of banks and insurance companies among its Limited Partners.
IvyCap has already made two investments from Fund II – home services startup TaskBob and fin-tech venture FTCash. It has backed about 10 ventures from Fund-I, including digital advertising technology company Sokrati, online jewellery company Bluestone and online lingerie retailer Clovia. Gupta also states that, 10% of the new fund capital commitments will go towards backing very early-stage ventures that will primarily be sourced from startups registered on its Bengaluru-based seed-stage platform, IvyCamp.