Early stage investor Fulcrum Venture India (FVI) has achieved first close of its second investment fund at Rs 60 crore ($9.7 million), a top executive told VCCircle. Although sector agnostic, the fund would have a preference for healthcare-related investments with pharmaceutical companies being the focus area.
“Friend and family brought in Rs 26 crore and the rest was raised from HNIs. On an average, HNIs invested Rs 2-3 crore in the fund,” said Krishna Ramanathan, founder partner, Fulcrum Venture India.
Fulcrum Venture India Fund II, which began raising funds last year, is looking to make the second and final close at Rs 85 crore in six months.
FVI has been focusing on early-stage investments, chasing deals in sectors such as pharma, niche retail, consumer durables, education and information technology.
The firm has warehoused three deals from the second fund and has made commitments of up to Rs 45 crore. It has begun investing in three companies—Congruent Solutions, Shield Healthcare and Richfeel—in tranches.
In April this year, it announced investments worth Rs 21.82 crore through multiple tranches in Chennai-based pharmaceutical company Shield Healthcare Pvt Ltd. The funds raised will also allow the firm to buy back shares of some of the co-founders.
In January, it said it is investing Rs 8 crore in Congruent Solutions Pvt Ltd, an IT services provider specialising in the pension administration industry, for a 20 per cent stake in the company. It co-invested in this transaction where the other investor brought in close to Rs 2 crore.
In another deal from the new fund last year, it committed Rs 15 crore to Richfeel Trichology Centre, which is into scalp care and runs a trichology chain.
Unlike its first fund, where the focus was smaller firms and ticket size of investment was in the Rs 5-10 crore range as seed investment, in the new fund it would go for companies which have been existing for around 10 years with a top-line of up to Rs 20 crore. The expected ticket size is Rs 5-20 crore.
Its portfolio companies include SwaaS Systems (offering sales force automation solution for the pharma sector) and CMYK Health Boutique (runs The Four Fountain Spa chain). Last year it had invested in Nutri Synapzz Therapeutix, which is into nutraceuticals, from its maiden fund.
(Edited by Joby Puthuparampil Johnson)