Gurugram-based Wealth Management Firm Finvolve Closes Maiden INR 100 Cr Fund, Launches Two New Funds Finvolve also announced the launch of two new funds, pre-seed Accelerator Fund and Scale Fund, including a GIFT city, with an investment capacity of around INR 500 crore to widen its investment spectrum: Accelerator, Seed, and Scale.
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Finvolve, a joint venture of India Accelerator and Finolutions, has announced the closure of the first INR 100 crore fund.
The firm also announced the launch of two new funds, pre-seed Accelerator Fund and Scale Fund, including a GIFT city, with an investment capacity of around INR 500 crore to widen its investment spectrum: Accelerator, Seed, and Scale.
The pre-seed Accelerator Fund will leverage India Accelerator's strength in building early-stage startups and shall be the first institutional investor in the selected startups, while Scale Fund will invest in startups demonstrating significant traction and typically profitable companies.
As per the official release, the funds will be deployed in three segments. An initial fund of USD 150K per startup will be invested through the Accelerator Fund to help startups refine their business models and expedite their market entry.
Furthermore, USD 500K–USD 1 million is designated for the Seed Fund to help startups scale operations, and a further USD 1-3 million is allocated to the Scale Fund to support more mature startups poised for expansion and potentially public offerings.
Finvolve wants to invest at least INR 25 lakh in roughly 25–35 sector-agnostic startups.
Apoorva Vora, Co-Founder, Finvolve, said, "It is a significant shift for us to evolve into a multi-stage fund. The initiative will provide comprehensive support to startups from ideation to IPO, ensuring they have the resources and expertise needed to succeed in a competitive global market.
"For the investors, there are considerable advantages: multi-stage funds provide diversification across different asset classes, which helps to spread risk and potentially enhance returns for our LPs. Though startups need capital to get off the ground, this fund closure is not just a financial resource but serves as a catalyst for innovation and opportunity. We also intend to target larger family offices and offer co-investment opportunities to them as part of this aggressive growth," he added.
Finvolve has already made investments in a number of startups, including Zulu Defence, Inc 42, Matter, Stage, and Advance Mobility. In the future, it will support enterprises that have a social impact and startups that use ONDC, as well as those in the fields of dronetech, spacetech, renewable energy and mobility, and the circular economy.
Ashish Bhatia, Co-Founder, Finvolve, said, "There is an unprecedented surge in the number of startups making an impact on the economy. We have developed aggressive and bold forward-looking theses in fragmented industries with long-term tailwinds and in businesses with a compounding tech advantage, e.g., unmanned vehicles and space, energy and mobility, circular, impact, ONDC, etc."
"We are looking forward to driving further technology innovation in these sectors with this fund close and new fund offerings. We aim to capitalise on the financial market's investment gap by sourcing and investing in opportunities that other funds are missing due to their size, networks, pipelines, and biases," he added.
