Wednesday, September 4, 2019

Chiratae Ventures to raise $20 mn from International Finance Corporation

Current Affairs

Chiratae Ventures, previously known as IDG Ventures, will raise $20 million from the International Finance Corporation (IFC). Chiratae is an early stage venture fund focusing on Indian start-ups.
World Bank's investment arm said that the proposed transaction is an aggregate $20 million equity commitment in Fund IV.
"IFC's own account equity will provide patient risk capital to the GP, assisting the fund in achieving its first close. Investment from a lifecycle investor like the IFC will position the Fund to have better access to co-investment and follow-on capital for its investee companies," said IFC.
The company invests in consumer media and technology, health tech, software/ SaaS and fintech firms. The fund supported over 75 ventures, nearly $470 million under advisory. It participates in seed rounds, and early and expansion stages.
Chiratae Ventures International Fund IV LLC is a private limited liability company with limited life incorporated under the laws of Mauritius. Chiratae Ventures Master Fund IV is an India domiciled Category I Alternate Investment Fund (AIF) - collectively referred to as Fund IV. Chiratae Advisors Co. Limited. (Investment Advisor) will be the manager. The investment advisor is wholly owned by Chiratae Ventures India Advisors Private Limited (formerly IDG Ventures India Advisors Private Limited), an Indian private limited company.

The fund would help early state technology companies to access equity, increased investee growth, which will be supported by the fund's value creation strategies; and increased access to digitized products/services for investees' customers, particularly in non-tier 1 cities. In the context of a relative active VC fund market in India, the project's contribution to market creation is assessed as moderate and includes increased integration of the Indian VC market by bringing in more domestic and international LPs, said IFC.

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