Prime Venture’s fourth India VC fund oversubscribed with $120 mn corpus

 Prime Venture’s fourth India VC fund oversubscribed with $120 mn corpus

Prime Venture Partners, an early-stage India-focused venture capital firm, said Thursday it has marked the final close of its fourth fund after garnering $120 million (Rs 900 crore) as against its target of $100 million.

This comes six months after the firm hit the first close at $75 million to invest in companies across fintech, edtech, healthtech, consumer internet and global SaaS.

Prime said it will continue to focus on being the first institutional investor, maintaining its high-conviction and deep-support investing model in early-stage technology startups. In addition to prior focus areas, the firm has expanded its portfolio into new areas. These include electric vehicles, B2B, Web 3.0 and gaming infrastructure platforms.

With this closing, the new fund takes the total capital under management across all Prime Venture funds to over $250 million.

In addition to existing investors, the new fund is backed by International Finance Corporation (IFC), part of the World Bank Group, a top-tier university endowment, a top-tier fund-of-funds and several global technology entrepreneurs.

The firm said that more than 90% of companies backed by Prime Venture at the seed stage go on to raise follow-on capital from marquee investors in India and globally within 18 months and achieve strong product market fit, follow-on rounds, profitability or exits with meaningful outcomes to founders.

The VC firm’s first three funds are committed across 32 companies. Its first fund recently delivered strong return to all its Limited Partners. This was via an exit to secondaries specialist Foundation PE, which acquired the entire LP interest in the first fund.

Prime has backed companies like Niyo, Ezetap, Happay (acquired by Cred for $180 million), Recko (acquired by Stripe), Perpule (snapped up by Amazon), Quizizz, Sunstone, MFine, MyGate and Bolt.

Vivek Sinha

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