GrowX Ventures launches Fund-II, aims to raise Rs 400 crore

Enterprise-to-business (B2B) and deeptech-focused venture capital agency GrowX Ventures, which has backed startups like Pixxel, Bellatrix Aerospace, CynLr and Stashfin, has launched its Fund-II with a goal of elevating Rs 400 crore.

After investing in early-stage companies, the fund now plans to again 20-24 startups in each early-stage and early-growth phases. The primary cheque measurement will probably be as much as Rs 10 crore in seed rounds, and Rs 20-30 crore in Collection B rounds.

“With this specific fund, we’re constructing what we name a stage-diversified portfolio. We have recognized two levels for our focus. The primary is the seed stage, which we have been investing in for the previous 10-12 years, and we have seen vital success on this space,” founder and chief government Ashish Taneja advised ET.

In accordance with Taneja, the agency missed out on totally backing its winners, largely as a result of it maintained a seed-stage mindset.

“Collection B is really the inflection level for B2B deeptech firms. That is the place you may say there’s product-market match. The corporate has reached a stage the place the expertise and crew are in place, there are indicators of early buyer adoption, and potential use instances are rising from what has been constructed. That is the place compounding occurs,” he mentioned whereas highlighting the significance of staying invested and constructing a portfolio of recent ventures at that particular stage.

Throughout the B2B house, the New Delhi-based agency will focus its investments on sectors akin to semiconductors, defence expertise, house expertise, alternative supplies and superior manufacturing. It’ll additionally discover alternatives in fintech, healthtech and provide chain/logistics.

Within the early progress stage, the fund will goal startups in deeptech, software-as-a-service (SaaS) and tech-enabled enterprises amongst others. Through the seed stage, its focus will solely be on deeptech startups.“Seed stage is all concerning the founders and their understanding concerning the market that they need to disrupt,” he mentioned.

GrowX is within the technique of asserting the primary shut of the Fund-II, anticipated to happen by mid-January. The capital was primarily raised from startup founders in addition to present and new restricted companions, Taneja mentioned with out disclosing particulars.

The earlier fund, launched in 2019, had a complete corpus of Rs 162 crore. In accordance with Taneja, capital from Fund-I has been totally deployed.

“We count on to begin seeing exits from that exact fund mid subsequent 12 months,” he mentioned.

Previous to this, it had Fund-Zero, which was sector-agnostic and made investments in areas akin to shopper, B2B and deeptech. It has since exited eight startups from this fund that included logistics optimisation startup Locus and omnichannel retail platform Fynd.