8i Ventures Achieves First, Close Of USD 50 Mn Second Fund

Early-stage venture capital fund 8i Ventures on Thursday said that it has achieved the first close of its USD 50 million (over Rs 400 crore) second fund. "The fund has raised 50 per cent of its targeted assets under management and achieved a first close of USD 25 million, raised largely from family offices like Salgaocars and Kothari (DSP) who were also invested in 8i Venture's first fund," the firm said in a statement. 8i Ventures' second fund has a total corpus target of USD 50 million to be invested in Indian start-ups in the next 3 years.

The fintech and commerce focussed fund plans to invest USD 1.5-2 million cheques, going up to USD 10 million across subsequent rounds. The firm claims 8i Ventures Fund I has grown to 270 per cent in three years, driven by early-stage investments in Slice, M2P and Blue Tokai. It said that the firm has scored one of the highest venture exits in India in April this year, when it partially exited a seed investment in its portfolio company - M2P, at a 36 times multiple over 2 years.

"Fund-2 will have 15-20 companies that we will invest in over the next 3 years. We will invest at seed, with a USD 1.5-2 million cheque, going up to series B in the winners," 8i Ventures, Founding Partner, Vikram Chachra said. 8i Ventures, General Partner, Vishwanath V said that Fund I portfolio winners already process USD 18 billion of payments annually, while generating USD 100 million in gross profits, between them. "For Fund II, we will follow the same thesis, but with a larger ownership across our investments. We are seeding companies with USD 1.5-2 million cheques, going up to USD 10 million across subsequent rounds," he said.

(PTI)