Mumbai-based early stage venture capital firm Matrix Partners India has raised its third fund of over ₹2,100 crores ($300 million), eight years after it closed its second fundraiser. The venture firm invests in seed, early and early growth stages across various sectors.
Matrix Partner India raised its second fund of same amount ₹2,100 crores ($300 million) in 2011 and has not raised any more funds since then. The investment firm, however, has topped up its existing second fund with ₹770 crores ($110 million) in 2016.
“This is an exciting time to be an entrepreneur in India – mobile internet led leapfrogging is underway across sectors and increasing GDP per capita and consumerism will have a multiplier effect on scaling businesses,” said Avnish Bajaj, founder and managing director at Matrix Partner India, while commenting on the fundraising.
Matrix Partners India has changed investment strategy and will stay away from overhyped sectors like food tech which has attracted a massive chunk of VC money since 2017. The fund plans to invest in emerging sectors.
“We think e-commerce and marketplaces are under-invested and fintech has been over-invested in. E-commerce is in a different avatar now, with tinges of social media and WhatsApp. SaaS and enterprise is taking off,’ said Bajaj.
Matrix Partners India was founded in 2006 and is a franchise of US-based Matrix Partners. The VC firm has around ₹7,000 crores ($1 billion) in assets under management and has invested in prominent startups like India’s cab aggregator unicorn Ola, scooter rental startup Vogo, online classified firm Quikr, healthtech platform Practo, news mobile app Dailyhunt and budget hotel chain Treebo.
Last year in August 2018, Sequoia India closed its sixth fund at ₹4,865 crores ($695 million). Another venture capital firm SAIF Partners has been in the buzz for raising its third India-dedicated fund of ₹2,450 crores ($350 million). 021 Capital, backed by Flipkart founder Binny Bansal, raised ₹224 crores ($32 million) in maiden funds earlier this month.
Matrix Partners India exited from ride-sharing startup Ridlr after Ola acquired the firm. The venture capital firm also exited from startups like Itzcash and Quikr.