Avataar Venture hits final close of third VC fund

 Avataar Venture hits final close of third VC fund

Avataar Venture Partners has made a final close of its US$100-million fund aimed at making additional investments in some existing portfolio companies as well as striking new deals.

The new Opportunities Fund adds to the $300-million corpus raised two years ago, the VC firm said.

The fund will follow Avatar’s core strategy of making growth-stage investments in business-to-business and software-as-a-service (SaaS) companies that have at least $15 million in annual recurring revenue.

Its deal size will be in range of $10-30 million (about Rs 73-220 crore), Avatar said in a statement.

The VC firm was founded in 2019 by former Norwest Venture Partners executive Mohan Kumar and Nishant Rao, who previously worked as global COO at SaaS firm Freshworks Inc and managing director of LinkedIn SE Asia.

“The fact that our new LPs have trusted us with additional capital (in less than a year and half of being live with Fund 1), and despite purely remote interactions during the pandemic, is inspiring,” said Kumar.

He added that the new fund received participation from a few large institutional limited partners (LPs) across Europe and US. He didn’t disclose their identities.

Avatar has struck three new investments including a Series C bet on SenseHQ and a Series B round in RateGain. It has also backed artificial intelligence infrastructure operations platform HEAL.

Besides, the firm has grown its team by hiring two senior executives in the US.

Other notable companies in the fund’s portfolio include Zenoti, Appnomic, cloud analytics company Manthan Software, omnichannel customer engagement platform for retailers Capillary Technologies, CRMNext and logistics platform ElasticRun. It had taken over some of these companies from Norwest to kick off its operations.

Ankit Doshi

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