Bengaluru-based VC firm 3one4 Capital raises ₹1,600 crore in new fund

Bengaluru-based early stage venture capital firm, 3one4 Capital, on Monday said it has closed its fourth early-stage fund (sixth fund overall) at $200 million (about Rs 1,600 crore).

The fund was vastly oversubscribed within a timeframe of 2.5 months since the inception of the raise process, said the VC firm.

"We are building 3one4 Capital to be the leading Indian homegrown venture capital firm, and this requires us to set an example of decadal discipline and consistent performance," said Pranav Pai, Partner, 3one4 Capital.

"We can now continue to direct more meaningful capital to discover the next set of generational tech leaders from India," he added.

Although Fund IV of 3one4 Capital was oversubscribed to $250 million (Rs 2,000 crore), the firm has decided to adhere to its disciplined model and has reduced the accepted amount to $200 million in order to maintain the fund's intended size.

In total, the firm will manage Rs 3,710 crore ($510 million) of committed capital and over Rs 6,000 crore ($750 million) in assets under management. The cumulative market cap of the companies inAthe portfolio is over $7.5 billion (Rs 60,000 crore).

Key investors in 3one4 Capital include India's three systemically important banks, five of India's largest listed banks by market cap, eight of India's leading mutual fund operators, leading US university endowments, global sovereign funds, global corporations and insurance companies, leading corporations and a selection of India's largest family offices.

The first close of Fund IV was completed in March 2023, and over five deals have already been approved or invested in. The final close is expected by the end of Q1 FY 2023-24.

3one4 Capital plans to continue its early-stage strategy, focusing on sectors such as consumer internet, SaaS, fintech, and Enterprise and SMB digitisation, while increasing investments in newer areas such as digital health, climate tech and more.

"We will double down on India-specific businesses, given our lessons from market leaders such as Licious, WeRize, and KukuFM, and will remain bullish on India's consumption patterns," said Anurag Ramdasan, Partner, 3one4 Capital.

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