Boutique asset management firm Varanium Capital on Thursday announced the first close of its venture capital fund 'Varanium NexGen', which is a Rs 200-crore fund aiming to invest in early stage fintech start-ups. The fund has announced its first close at over Rs 50 crore.
Aparajit Bhandarkar, managing partner - Venture Capital at Varanium, told FE that the fintech space, where the fund intends to make investments, may include verticals like payments, lending, wealth management, insurance tech, cyber security, payroll processing, etc.
"We are having a pitch day soon where 22 start-ups in the fintech space will be making their pitches. We are doing early stage investments that include seed stage or pre-series A funding. Typically, these companies would have a product that is up and running and may have a few customers. The capital that we will provide is intended to get them to a stage where they become big enough to get the series A funding," Bhandarkar said. The fund is intending to make 35-40 investments of Rs 2-5 crore each.
Varanium NexGen's limited partner (LP) base consists of business persons, professionals and family offices, including the family office of Mohandas Pai. TS Anantakrishnan, founder of Varanium Capital, and Jitendra Gupta, who is the co-founder of Citrus, will be on the investment committee. Varanium AMC offers dollar-denominated investment opportunities across debt, equity and structured notes through its funds to offshore investors. Varanium manages over Rs 5,000 crore assets in offshore funds and domestic funds.