Venture capital firm Quona Capital on Tuesday announced the final close of its third fund at $332 million, exceeding the targeted corpus of $250 million.
The fund will focus on investments in fintech and adjacencies of the fintech space, encompassing firms and businesses that are expanding access to financial services for underserved consumers in Latin America, India, Southeast Asia, Africa and Middle East and North Africa (MENA).
The fund has a mix of investors including global asset managers, insurance firms, investment and commercial banks, university endowments, foundations, family offices and development finance institutions.
The majority of Fund III investors returned from its previous funds, joined by more than 20 new relationships, according to Quona Capital.
The firm was established as an independent venture capital firm in 2015 by co-founding managing partners Monica Brand Engel, Jonathan Whittle, and Ganesh Rengaswamy.
In an emailed response, Rengaswamy said Quona Capital plans to make 20-25 investments in seed to Series A stages from the third fund with average ticket sizes of $5-6 million.
There will be also 6-10 more experimental investments of smaller cheque sizes, he said.
Rengaswamy said that over the company’s lifetime, it can invest up to two to three times of that amount.
Quona Capital marked the final close of its second fund at $203 million in 2020. This fund made initial investments of $3-$5 million.
The third fund brings Quona Capital’s aggregate of committed capital to over $745 million.
“Our prior fund performance, robust pipeline of inclusive fintech entities, and growing LP interest in our offerings are ringing endorsements of our view on the prospects of impact-oriented venture investing in emerging markets,” said Engel, who leads Quona’s investments in Africa and MENA.
Quona Capital was earlier called the Frontier Investment Group, which was a part of Accion International.
It became a separate firm although Accion remained as an anchor investor in its funds.
In India, the company’s portfolio includes Bureau, Rupifi Technologies, Onsurity, CreditMantri, NeoGrowth, Fisdom, ZestMoney and SMEcorner.