Direct-to-consumer (D2C) focused venture capital fund Fluid Ventures on Monday announced the final close of its debut fund at Rs 50 crore (around $6.6 million).
The fund had an initial target corpus of Rs 45 crore (approximately $5.9 million) and it exercised the green shoe option to raise the additional amount, said Fluid Ventures in a statement.
Fluid Ventures marked the first close of its debut fund in June 2021.
More than 35 limited partners (LPs), or investors, invested in the fund, which is registered with the Securities and Exchange Board of India (SEBI) as a Category I alternative investment fund (AIF). Of the total LPs, 80% were first-time investors in a SEBI-registered AIF, it noted.
The D2C-focused venture capital fund typically invests Rs 1.5-3 crore in emerging consumer brands. Fluid Ventures keeps a significant portion for follow-on rounds, it added.
“Keeping investee companies our priority, we spend significant time with our founders to help them and their teams accelerate this growth by nurturing them in the best possible direction,” said Dhianu Das, General Partner, Fluid Ventures.
Floated by Das and Amit Singal, the fund has already invested in six companies in the last three quarters. The investments include Fabriclore (e-retailer for fabric), Shumee Toys (sustainable wooden toys brand), WallMantra (home décor brand), Eske (luxury lifestyle brand), Raskik (coconut-infused beverages) and Masterchow (Chinese condiment and sauce brand).
The fund will further seek to invest in eight to 10 growth-stage startups over the next two years.
"We are looking for products made for Bharat by introducing D2C 2.0 ‘accessible to all, where the products are available to Tier-2 and Tier-3 cities as well. Our model is not to spray and pray, but to be focused in approach, invest in emerging D2C business and build Indian global brands," said Amit Singal, founding partner, Fluid Ventures.
Das and Singal previously invested in startups such as PeeSafe, Junio, eBikeGo, Chqbook, Neeman Shoes, Akiva Superfoods, Power Gummies, and Vanity Wagon. They have also exited from startups such as Burger Singh, Carmesi, Infeedo, GoMechanic and ClearDekho.
As per a report by IVCA, AWS, and Praxis Global Alliance, the number of micro-VC funds in India has increased to 88 in 2020 from 29 in 2014.
Last year, Artha Venture Fund raised investor commitments worth more than Rs 220 crore ($30 million) for its debut fund.
Earlier this year, VCCircle reported, Gemba Capital was set to announce the final close of its maiden $10 million fund.