Capria Ventures India Fund III, with a green shoe option of up to $125 million, will allocate 25% of its capital for late-stage investments in breakout companies from the firm’s portfolio, offering early exits to LPs.
Global South specialist venture capital firm Capria Ventures has launched its $100-million (Rs 830 crore approximately) Capria India Fund III, said a top executive. The fund, structured as a master-feeder investment, will see participation from both Indian and global investors.
It has also accounted for a greenshoe option of up to $125 million.
The fund will invest in 25-30 startups across seed and pre-Series A rounds, with the average cheque size ranging from $500,000 to $2 million. It will back businesses aimed at growing the Indian middle class across HRtech, fintech, SaaS, and climate sectors. Capria will also evaluate investments in the manufacturing, agritech, and business-to-business sectors.
The fund will continue to look at the use of applied GenAI in its portfolio companies.
With the new fund, Capria plans to set aside 25% of the fund for follow-on investments in portfolio companies from its previous funds to tap into late-stage opportunities and give earlier returns to its Limited Partners (LPs).
“Not only will we invest in new companies, we will also invest in late-stage companies from our predecessor funds to return capital at high IRRs (Internal Rate of Return). India has faced an issue of giving early exits, even though the TVPIs (Total Value to Paid-In capital) have been healthy. Our strong attempt will be to address that, now that we have a strong portfolio from previous funds,” Surya Mantha, Managing Partner at Capria Ventures, told YourStory.
