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India Quotient gets $64M from domestic investors for first close of 4th fund

india quotient

India Quotient has made its first close of its fourth fund at $64 million from indigenous investors, including major family offices.

The fund’s investors include top entrepreneurs like Flipkart cofounder Binny Bansal, Paytm’s founder Vijay Shekhar Sharma and Makemytrip cofounder Deep Kalra. It is also in talks with international investors for raising the rest of the capital– $80 million in total.

Anand Lunia, the founding partner of India Quotient, said the total fund size could get extended to $90-$100 million due to the risen interest from limited partners (LPs), who invest in venture capital funds. As per Lunia, some of the fund’s LPs are also investors in India Quotient’s portfolio companies like ShareChat and Sugar Cosmetics, where it has taken partial exits.

“We have raised nearly 80% of the capital really fast. The top 10 family offices have put money in our fund. For the rest of the fund, we are looking at a couple of large cheques from investors in the US, Singapore, instead of several smaller investments,” Lunia said.

“It would be oversubscribed given the ongoing discussions and we may have to increase the size but it will be less than $100 million as we want to remain a concept-stage investor,” he added.

According to him, India Quotient has also concluded a $40 million Opportunities Fund, which is typically utilized to double down on best-performing companies in the portfolio.

Established by Lunia and Madhukar Sinha in 2012, India Quotient’s initial fund was $6 million in size while the next two had a corpus of $20 million and $60 million, respectively.

Gagan Goyal was recently made a general partner at the fund. Pankaj Dinodia, the chief executive of Dinodia Capital Advisors, has also entered the firm as the chair of its LP advisory committee. 

India Quotient’s latest raise comes at a time when the deal-making pace has grown in the early and seed-stage phase. Funds like Sequoia’s Surge and other VCs are backing young and idea-stage startups actively. 

“We are looking beyond off-beat themes to stay ahead of others,” Lunia added.

The firm has returned the principal amount of capital from its fund 1 and fund 2 to investors. It also made partial exits from portfolio firms like ShareChat and Sugar Cosmetics.

It is said to have made a huge gain of more than 500 times from selling parts of its stake in ShareChat earlier this year when it raised $502 million at a valuation of a little over $2.1 billion. From Sugar Cosmetics, it made a 50-times exit on its initial investment, Lunia said.

Over the next year, it may make additional exits from some of its portfolio companies from fund 1 and fund 2 as their valuation has increased multiple times since India Quotient first backed them.

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