GVFL plans $1B fund to back Japanese ventures in Gujarat

Ahmedabad-based venture capital firm GVFL Ltd, formerly known as Gujarat Venture Finance Ltd, is looking to float a $1 billion (over 6,000 crore) fund exclusively for Japanese ventures in Gujarat,  according to a report by Business Standard.

The proposed fund, once financially closed, will be the largest fund ever floated by the company. The VC firm is on an expansion spree and is holding discussions with Japanese and other Southeast Asian investors to invest through the fund.

“In one or two years, more than 100 Japanese entrepreneurs will be coming to Gujarat to set up businesses. In recent times, Japan has reiterated its interest of investing in India, especially in Gujarat. There will be cluster-based specialised industries which would also need infrastructure built around their food and culture. We will have to tap them through a dedicated fund,” the paper quoted Harish Pattnaik, managing director of GVFL, as saying.

The ticket size of the $1 billion fund, which will act as a growth capital, will be around Rs 200-500 crore per venture. With a size of $1 billion, the fund will also up the ante of investment per investee firm. The PE firm hopes to achieve financial closure for the Japanese fund by 2016.

The company will start registering the fund with SEBI after the elections. It is also planning another SMEs-dedicated fund—Value Multiplier Fund—which will be registered with SEBI soon.

Recently, the company raised Rs 500-crore Golden Gujarat Growth Fund-1 which it plans to expand to Rs 1,000 crore; it is already attracting commitments from investors in Hong Kong and Singapore for the fund.

Since its inception, the company has managed seven venture funds and invested in 81 technology and growth stage companies. Its portfolio companies include E-Cube India, Windfarm Project, Alfa Corpuscles, Ushdev Power, Hubtown, iNurture Education and Ratnakar Estate.

(Edited by Joby Puthuparampil Johnson)

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