CA Technologies comes in as LP for IDG Ventures’ second India-focused VC fund

NASDAQ-listed IT management software and solutions company CA Technologies has come in as a limited partner (LP) for IDG Ventures India Fund II, it said on Thursday. The firm did not disclose the amount it has committed for the second India-focused fund of the global VC investor but shared that the alliance seeks to invest in enterprise software industry in India.

VCCircle had first reported in December that CA Technologies, which has annual revenues of $4.6 billion, is close to investing in a technology focused venture capital fund through which it will be able to invest in young technology companies in India, specifically enterprise software.

Jacob Lamm, executive vice president of strategy and corporate development, CA Technologies, said, “With IDG Ventures India, we have a proven partner who can help us gain early visibility into the many enterprise software startups in the region that represent compelling investment opportunities.”

The investment also complements the organic growth planned for CA Technologies in its R&D and engineering centres, along with expansion into enterprise markets including mobility, cloud, Software-as-a-Service, big data and DevOps.

The investment provides CA with a platform to nurture new ventures outside its existing business, while offering the flexibility to quickly ‘roll-in’ successful technology into its product portfolio.

IDG Ventures India is an India-focused technology venture capital firm. It is part of IDG Ventures, a global network of technology venture funds with more than $6 billion under management, over 200 investee companies and 10 offices across Asia and North America.

A year ago it had launched the fundraising programme for its second India fund which sought to raise around $175 million. Later a senior executive of the firm had said it is raising rupee capital for its second India-focused fund with a target corpus of around Rs 1,000 crore (around $162 million). For its new fund, the firm is targeting wealthy Indians and signalled a new trend in the Indian venture capital industry which draws most of its money from global investors.

IDG Ventures India Fund II is the successor to its first fund, which raised $150 million in 2007. The VC firm has been investing between $0.5 million and $5 million in early-stage companies and up to $10 million in growth-stage companies from the first fund.

IDG Ventures has backed names like online fashion retailer Myntra, medical device company Forus Health and Valyoo Technologies, which owns and operates Lenskart.

(Edited by Joby Puthuparampil Johnson)

Leave Your Comment(s)