JSW Ventures, a tech-focused startup and venture capital fund, has marked the first closing of RS 150 crore of its new funding, to raise the companys total corpus fund of RS 350 crore.
As per JSW Ventures Managing Partner, Gaurav Sachdeva, the company will initially invest $2-3 Mn, followed by $2 Mn for its funding rounds of 10-12 companies, and plans to invest in 4 companies per year.
Mr. Sachdeva added that about a quarter of the new funding will be used for SaaS (software-as-a-service) firms, while the remaining sum will be deployed in several platforms such as consumer, healthcare, and financial services. He further stated that SMEs (small and medium enterprises) or mid-market base are main growth engine for SaaS companies to attain product-market fit, before turning into a global market. The new funding is expected to be closed by December end, 2020.
The growth of SaaS companies is cumulatively fueled by Venture Capital ecosystem and knowledge of companies founders regarding the switching barriers, data monetization, and product interface creation.
In 2016, JSW Ventures marked its first funding worth Rs 100 crore, under the complete support of the Jindal family. Sebi (Securities and Exchange Board of India), a market regulator, approved the second funding round of JSW Ventures in August. The latest JSW fund is anchored by the Jindals, with 30% commitment to the fund. High net-worth individuals, family offices, and banks are other investors in the fund.
JSW is eying companies with strong products demand in the market for investment, which will be backed by existing investors such as incubators/accelerators and angels.
Indus OS (regional mobile operating system), LimeTray (Saas-based solution provider to restaurants), Purplle (e-tailer of beauty products), Homelane (interior design firm), and Overcart (pre-owned and refurbished products market) are part of the portfolio of investment partners appointed by JSW.
For instance, Purplle recently raised $40 million from Goldman Sachs and Verlinvest, while $30 million from Pidilite Group and EIF (Evolvence India Fund) was raised by Homelane. Sachin Tagra is the new investment partner of JSW.