Prime Venture Partners hits first close of new VC fund at $75 mn

 Prime Venture Partners hits first close of new VC fund at $75 mn

Bengaluru-based venture capital firm Prime Venture Partners has hit the first close for its fourth fund at $75 million (Rs 556 crore) and is looking to bolster its top team by adding a fourth partner.

The fund will help the VC firm continue to focus on being the first institutional investor in early-stage technology startups, Prime Venture said Wednesday. The vehicle has a target corpus of $100 million (Rs 740 crore), nearly 40% more than its predecessor.

In addition to existing focus areas of fintech, ed-tech, health-tech, consumer internet and global SaaS, the firm plans to expand into new areas. These include decentralised finance (DeFi)/crypto, electric vehicles and gaming infrastructure platforms.

The new fund attracted International Finance Corporation, an unnamed top-tier university endowment, several returning family offices and institutions, and numerous global technology entrepreneurs as limited partners. IFC itself committed around 15% of the corpus.

Prime Venture was founded in 2012 by Shripati Acharya and Sanjay Swamy. It added Amit Somani as a partner in 2015. The firm invests in five-six companies a year.

The VC firm had raised $72 million for its last fund in 2018. Prior to that, its second fund had scooped up $46 million in 2015. Its maiden fund had a small corpus of $8 million.

The first three funds are committed across 32 companies spanning sectors such as fintech, healthcare, SaaS, education and logistics. Most of these companies have raised follow-on rounds of investment from other institutional investors in India, Silicon Valley and Asia.

While most of Prime’s portfolio companies are focussed on the booming digital India opportunity, it also has several companies that target the US, Middle East and other international markets, or that initially start in India and expand from India to other regions.

Some of its notable portfolio companies include the interactive learning startup Quizziz, MyGate, digital health startup MFine, remote patient monitoring startup Dozee, neobank NiYO and pay-after placement management program Sunstone Eduversity.

Quizziz is used by teachers in 120 countries and is backed by marquee investors such as Tiger Global and Yahoo co-founder Jerry Yang. Tiger Global is also an investor in MyGate, which provides security software solutions for apartments that are being used across 20,000 societies and in 3.5 million households.

Vivek Sinha

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