Ola, Dailyhunt backer Matrix Partners India looks to raise $450 mn for 4th fund

Venture capital company Matrix Partners India, which has subsidized unicorns like Ola and Dailyhunt, has kicked off the procedure to elevate a bigger new fund amid investment crunch withinside the startup surroundings.

Matrix Partners India targets to elevate $450 million for its fourth fund – Matrix Partners India IV, LP, in accordance a disclosure with the United States Securities and Exchange Commission (SEC).

The assignment capital company Matrix Partners India had raised $three hundred million for its 0.33 car in 2019.

An e-mail despatched to Avnish Bajaj, founder and handling partner, Matrix Partners India, searching for information at the ability Limited Partners (LPs) withinside the fund and the brand new fund’s funding approach did now no longer elicit a response.

Matrix Partners India’s release of the brand new fund comes amid fears of a deepening investment wintry weather withinside the surroundings because of risky international cues and mass startup layoffs visible in latest weeks while a segment of the startups keeps to get investment and unicorns retain to erupt albeit at a mild tempo in comparison to remaining year.

Just in April this year, Matrix Partners India’s portfolio company Dailyhunt’s determine VerSe Innovation Pvt. Ltd raised a massive $805 million at a valuation of $five billion led via way of means of CPP Investments.

Matrix Partners India isn’t by myself in launching a bigger fund or elevating a larger fund in a endure marketplace this year. Just remaining week, its large peer, Sequoia Capital raised $2.eighty five billion throughout a hard and fast of budget to retain financing marketers to spend money on Southeast Asia and India. In March, Accel India, an early backer of startups inclusive of Flipkart and Freshworks, raised $650 million for its 7th fund. The following month, Elevation Capital (previously SAIF Partners) raised $670 million for its 5th India-targeted car.

Incorporated in 2006, Matrix Partners India has through the years modified from a quasi-private-fairness investor to a traditional assignment capital company with a focal point on tech startups.

The assignment capital company, which turned into commenced via way of means of Bajaj and Rishi Navani, had released its first fund with a corpus of $one hundred fifty million and later crowned it up to $three hundred million. Subsequently, it raised $three hundred million for its 2nd fund in 2011.

Five years later, whilst talks of floating a brand new fund have been doing the rounds, Matrix Partners introduced the extension of the second one fund via way of means of $one hundred ten million in 2016.

The equal year, Navani cease Matrix Partners to drift a brand new funding company named Epiq Capital.

Other handling administrators in Matrix Partners India are Tarun Davda and Vikram Vaidyanathan.

Matrix Partners India has been one of the maximum energetic assignment capital companies in India over the year. Last year, it made 29 investments of which 10 have been new bets, in keeping with a VCCircle analysis. In comparison, Accel made 39 investments of which 19 have been new offers and Elevation Capital made 35 investments of which 24 have been clean bets

According to its website, Matrix Partners India has over 60 cutting-edge investments. Its different foremost investments encompass Ola’s electric powered mobility arm Ola Electric Mobility, social trade startup DealShare, neobanking startup Jupiter, healthtech platform Practo, and pupil lodging startup Stanza Living.

Last week, the assignment capital company led a Series A investment in Mumbai-primarily based totally direct-to-consumer (D2C) skin care logo Foxtale.

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Sharanya Sinha

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