3one4 Capital’s Fund V In The Works, Eyes $225 Mn Corpus

Venture capital (VC) firm 3one4 Capital is gearing up to launch its fifth fund, with a likely target corpus of $225 Mn.

Called 3one4 Capital IFSC – Fund V, the fund will look to back early-stage startups across Seed and Series A rounds. The corpus will primarily target startups operating in sectors like AI and SaaS, enterprise and manufacturing automation, fintech, deeptech and consumer internet.

This comes a week after World Bank’s private lending arm International Finance Corporation (IFC) proposed a $20 Mn equity investment in 3one4 Capital’s fifth fund. The IFC website noted that the fund was targeting a corpus of $225 Mn.

Confirming the development to Inc42, the VC firm’s founding partner and chief investment officer Pranav Pai said that the process of finalising the total size of the fifth fund is currently underway. He, however, refrained from sharing further details.

“Consumers have a very vast opportunity and a lot of things are still left to solve and we’re going to keep investing in this space. There obviously are big ambitions for manufacturing and that’s done very well for us in fund IV. We will also continue with deeptech. And I think now all software is AI. So our software focus continues,” Pai elaborated on the latest fund’s investment focus. 

On the Fund V’s investment thesis, Pranav confirmed that the corpus will be modelled after principles adopted in the previous fund. 

The latest development comes three years after the VC firm closed its fourth fund at $200 Mn in May 2023. At the time, 3one4 Capital said that it would back early stage startups with average cheques in the range of $0.5 Mn to $5 Mn. 

Prior to this, the VC investment firm closed its maiden fund at ₹100 Cr in 2016, followed by Fund II at ₹250 Cr in 2018. It also closed its third flagship fund at ₹1,000 Cr in 2021.

So far, the investment firm claims to have backed 100+ startups and recorded 26 profitable exits across the first two funds. 

The development comes as early stage startups continue to garner healthy investor interest. As a result, a slew of new funds are emerging to cater to this budding segment. The Indian startup ecosystem saw the launch of funds worth $12.1 Bn in 2025, of which 58% targeted early stage startups. 

This momentum has continued well into 2026 as well. In February, ValleyNXT rolled out a ₹400 Cr fund to back homegrown deeptech ventures, while Celesta Capital also announced the launch of a deeptech fund with a target corpus of ₹2,000 Cr.

The post 3one4 Capital’s Fund V In The Works, Eyes $225 Mn Corpus appeared first on Inc42 Media.