Japan’s Incubate Fund Asia to invest in about 20 early-stage startups in India

• The fund has a target corpus of of $50 million (approximately ⟨₹416 crore).
  
• The capital raised from this fund will be utilised for making initial investments in early-stage startups and providing follow-on funding to successful ones.
  
• The fund has played a crucial role in supporting 27 Indian companies, including ventures such as ShopKirana.
  

Incubate Fund Asia, a Japanese venture capital fund that provides seed-stage investments across various sectors, has recently announced the successful initial closing of its third fund, which has a target corpus of $50 million (approximately ₹416 crore).

The capital raised from this fund will be utilised for making initial investments in early-stage startups and providing follow-on funding to those that exhibit strong fundamental growth.

The fund's objective is to create a portfolio comprising approximately 20 startups. Initially, 40% of the available investment capital will be allocated to establish this portfolio, with the remaining funds being reserved to support the most successful ventures within the portfolio.

With a global presence, Incubate Fund Group maintains offices in key locations, including Tokyo, Singapore, Bangalore, Mumbai, São Paulo, and Mountain View. Noteworthy investments in their portfolio include companies such as Captain Fresh, Yulu, ShopKirana, Plum, and others.

In a strategic move, Incubate Fund’s India focussed entity has rebranded itself as Incubate Fund Asia.

The rebranding effort signifies a deliberate alignment of the organisation's brand identity with its broader vision and extensive reach within the Asian startup ecosystem. Mr. Nao Murakami, the Founder and General Partner of the fund, has played a key role in leading Incubate Fund Asia, with support from Incubate Fund's Japan team.

Says Nao Murakami, founder and general partner, Incubate Fund Asia, "Our mission is to empower startups and fuel innovation across Asia. With the target fund closure of $50 million, we will be ready to significantly enhance our support to emerging ventures, driving sustainable growth and innovation.”

The fund has played a crucial role in supporting 27 Indian companies, including well-known ventures such as ShopKirana, creators of a retail merchandise procurement app, and Captain Fresh, a player in the B2B seafood trading sector.

Sumit Ghorawat, co-founder, ShopKirana said, “Incubate Fund Asia is everything that we look for in an investor and is definitely one of the top folks to have on your cap table and board. They have stuck with us during highs and lows, always pushing us to do better, giving us complete access to their rolodex and so much more.”

Their investments span a wide range of sectors, including B2B, B2C, supply chain, and consumer tech, and they operate in both Tier 1 and Tier 2 markets. Incubate Fund Asia's contributions have been behind business digitization and innovation, providing investments in the range of $500,000 to $1.5 million. In 2019, Incubate Fund introduced Fund II with a total value of $18 million (approximately 149 crore).