Early-stage consumer-focussed venture capital firm DSG Consumer Partners has marked the first close of its third fund that is looking to raise $50 million (Rs 346 crore), a top executive said.
The third fund -- DSGCP III -- has hit the first close at $30 million and the final close is expected by June this year, media reports said, citing Deepak Shahdadpuri, founder and managing director, DSG Consumer Partners. He added that the new fund will have a hard cap of $60 million.
Belgian private investment firm Verlinvest SA and Nigeria diversified conglomerate Kewalram Chanrai Group are the anchor investors in the new fund. Up to 90% of the capital in the third fund is expected to come from its existing Limited Partners (LPs).
DSG Consumer Partners had closed its second fund at a hard cap of $50 million after overshooting the target of $40 million in August 2017.
The venture capital firm’s second fund, DSGCP II, had received commitments from a number of institutional investors, family offices, and fund of funds with most of the investors from the first fund investing again. Two-thirds of the second fund had come from new investors, Shahdadpuri had told VCCircle.
An email query to Shahdadpuri did not elicit a response till the time of filing this article.
The investment strategy for the new fund is expected to remain the same as the previous funds.
The new fund will make seed and Series A investments in consumer brands in India and Southeast Asia in around 20 companies. It aims to invest $500,000 to $2 million in a company.
DSG Consumer Partners is also raising an add-on fund like it had done earlier to invest in select companies from the previous funds. It had raised an add-on fund DSGCP Tyeb of $20 million while it was raising its second fund.
DSG Consumer Partners' investments from the second fund include cold-pressed juice manufacturer Raw Pressery, art venture Insignia Art Collect Pvt. Ltd and tech-enabled motorbike rental startup Tazzo Technologies Pvt. Ltd.
DSG Consumer Partners' first fund raised $12 million and made 21 investments starting in 2013, Shahdadpuri said.
At that time, it had also raised DSGCP Souza, a $10 million co-investment fund. Its investments from the first fund include mobile payments service provider Mswipe Technologies, specialty food ingredients maker Veeba Foods, restaurant reservations and rating platform Eazydiner, personal coaching firm GOQii, frozen dry fruit and vegetable firm Saraf Food and specialty cheese maker Exito Gourmet.
Venture capital fundraising
Earlier in February this year, early-stage venture capital firm 3one4 Capital announced the first close of its dedicated opportunities fund that will seek to invest in select portfolio firms that are raising funding from the Series B stage onwards.