Micro venture capital (VC) firm Finvolve has announced the closure of its maiden fund at Rs 100 crore, backed by several family offices and investors. The VC firm stated that the fund will be used to support early to growth-stage start-ups and help them scale their businesses.
In addition, Finvolve announced three more funds, one of which is focused on Gujarat's GIFT City, with a collective target of Rs 500 crore. The funds operate on the principles of accelerator, seed, and scale for pre-seed start-ups.
Commenting on the development, Finvolve’s co-founder Apoorva Vora said, “The initiative will provide comprehensive support to start-ups from ideation to IPO, ensuring they have the resources and expertise needed to succeed in a competitive global market. For investors, there are considerable advantages. Multi-stage funds provide diversification across different asset classes, which helps to spread risk and potentially enhance returns for our LPs.”
Vora further added that the latest fundraise will not only serve as a financial resource for the start-ups but also act as a catalyst for innovation and opportunity.
The latest fundraise will be divided into three segments. Each selected start-up will receive about $150,000 from the acceleration fund and $500,000 from the seed fund to scale operations. Meanwhile, the third segment is intended for more mature start-ups, each of which will receive $1 million to $3 million from the scale fund for expansion and preparation for an IPO.
“There is an unprecedented surge in the number of start-ups making an impact on the economy. We aim to capitalise on the financial market’s investment gap by sourcing and investing in opportunities that other funds are missing due to their size, networks, pipelines, and biases,” said Ashish Bhatia, co-founder of Finvolve.
Founded by Vora and Bhatia, Finvolve was launched in 2022 as a collaborative effort between India Accelerator and Finolutions. While the former is a global start-up acceleration platform, the latter is a GIFT City-based B2B business consultancy firm.
Since its inception in 2017, India Accelerator claims to have backed more than 140 start-ups.