IDG Ventures now targets Indian investors for rupee fund

Venture capital firm IDG Ventures India 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 signals a new trend in the Indian venture capital industry which draws most of its money from global investors, as per a report in The Economic Times, citing the investment firm’s co-founder and top executive Sudhir Sethi.

He said the firm is looking to tap onto Indian angel investors whose population has increased significantly over the recent years.

This puts a question mark over the proposed fund IDG Ventures India Fund II, which was believed to be an offshore fund. The firm had registered the fund vehicle with the US Securities & Exchange Commission (SEC) to raise the money last year. As reported first by VCCircle a year ago, it was aiming to raise around $175 million in the proposed fund.

An e-mail query to IDG Ventures for more clarity did not elicit any response immediately.

IDG Ventures India is part of IDG Ventures, a global network of technology funds with more than $6 billion under management.

IDG Ventures India Fund II was to be 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.

Last week, the firm invested an undisclosed amount in Bangalore-based FieldEZ Technologies along with IvyCap Ventures.

(Edited by Joby Puthuparampil Johnson)

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