India Accelerator-Backed Finvolve Announces First Close Of Growth Stage Fund At ₹90 Cr

India Accelerator’s dedicated multi-stage venture capital (VC) investment arm Finvolve has announced the first close of its ₹250 Cr growth stage fund at ₹90 Cr. Now, it expects to achieve the final close of this fund within six months, following which it will continue deploying capital. 

The firm intends to back growth- and late-stage Indian startups operating across four key sectors — defence and aerospace, frontier and strategic technology, energy, and consumer. It intends to build a portfolio of 30-35 startups over the next three to four years.

Finvolve cofounder Apoorva Vora said that the first close allows the VC firm to build a diversified portfolio across growth and late-stage opportunities, while maintaining a disciplined approach to entry valuations, deployment and follow-on capital.

“From a capital perspective, we see a compelling opportunity to participate in companies that have already crossed the early-risk phase and are now entering their next stage of value creation,” he added.

Incorporated in 2022, Finvolve is a joint venture between India Accelerator and Gift City-based B2B wealth management firm Finolutions. It claims to be a multi-thesis, sector-agnostic and stage-agnostic investor that backs startups across their life cycle from idea to IPO. 

With the growth fund, the firm invests in late-stage companies and typically looks to exit through an IPO. The firm’s deployment cycle with the category II AIF is 1.5 years and it targets an exit in three years. 

Overall, Finvolve currently manages four active funds, including its two maiden funds aimed at early-stage startups – an accelerator fund and a seed fund – and a Cat II AIF aimed at late-stage companies. Notably, its previous fund is now fully deployed. 

It claims to have made over 40 startup investments and having raised capital commitments to the tune of ₹5,000 Cr. The firm’s portfolio includes the likes of drone maker IG Defence, anti-drone defencetech startup Indrajaal, frontier AI research startup Soket AI, satellite infrastructure startup Kepler Aerospace, and electric vehicle startup Matter EV. 

The post India Accelerator-Backed Finvolve Announces First Close Of Growth Stage Fund At ₹90 Cr appeared first on Inc42 Media.