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Omnivore ropes in America\'s development finance institution as LP in new fund
Photo Credit: Pixabay

Agritech focused venture capital firm Omnivore has roped in America’s development finance institution, US International Development Finance Corporation (DFC), as a key Limited Partner (LP), or an investor, in its third fund that seeks to raise $130 million. 

DFC has committed to invest up to $30 million in Omnivore Agritech & Climate Sustainability Fund 3, according to the development finance institution's recent disclosure. 

The first close of the third fund is expected at around $65 million by September, a person close to the development told VCCircle.  

First close is a milestone in a fundraising activity for venture capital and private equity funds after which they typically start deploying capital. 

An Omnivore spokesperson declined to comment. 

Omnivore, backer of startups such as DeHaat, Animall and Reshamandi, had rolled out its third fund earlier in April. The new fund plans to invest in 25-30 early stage startups focused on agriculture, food, climate and rural economy. 

At that time Omnivore said it is targeting the first close of the new fund by September 2022 and a final close by June 2023. 

Founded by Jinesh Shah and Mark Kahn in 2010, Omnivore has over the past decade backed over 35 startups.  Omnivore currently manages Rs 936 crore across two funds. It marked the final close of its second fund at $97 million (Rs 679 crore), overshooting the initial target of $75 million in April 2019. 

LPs in the second fund included UK government-owned development financial institution British International Investment (formerly CDC Group Plc), Dutch development bank FMO,  Swiss Investment Fund for Emerging Markets (SIFEM), Belgian Investment Company for Developing Countries SA, BASF Venture Capital (the corporate venture capital arm of Germany's BASF Group), Japan's Mistletoe, Germany-based fund manager Sonanz and family offices. 

Domestic LPs including state-run financial institution Small Industries Development Bank of India (SIDBI) and private-sector lender RBL Bank also invested in Omnivore's second fund. 

Other portfolio firms of Omnivore include include Arya, Stellapps, AgNext, Bijak, Ecozen, AGRIM, Eruvaka, and Pixxel. 

Earlier in December last year, Omnivore launched OmniX Bio, an initiative to back early-stage agrifood life sciences startups. 

In an interaction with VCCircle in January, Omnivore's Kahn said that the venture capital firm expects to exit three to four of its older portfolio companies this year. 

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