B Capital Announces the $2.1 billion final close of its third fund
- ByStartupStory | January 20, 2023
US venture capital firm B Capital Group, which has backed Indian startups such as Byju’s, Meesho and BlackBuck, on Thursday said it has marked the final close of its third fund and a companion fund at $2.1 billion.
The proceeds will be used to mainly target growth investments across enterprise, fintech, and healthcare sectors globally, with a particular focus on the US and Asia.
Raj Ganguly and Eduardo Saverin established B Capital in 2014. The business closed its second fund in 2020 for $820 million. In addition, it raised $126.3 million for the B Capital Ascent Fund II, LP, a new fund.
In an interaction, Ganguly said, “the market for growth investing is ripe as the valuations have come down drastically. I expect a 10-15% valuation reduction by the end of this calendar year.”
“The limited partners in the fund consist of pension funds, family offices and firms’ partners who have also invested up to 10% of the fund,” he added.
“Growth Fund III portfolio includes companies that are transforming their respective industries and generating meaningful impact. Our strategic partnership with Boston Consulting Group and strong on-the-ground presence in key geographies enable us to provide our portfolio companies with targeted insights and expert advice,” said Saverin.
As a member of the Capital Ascent founding team, Karan Mohla was brought in from the Indian venture capital firm Chiratae Ventures. He is responsible for finding and funding early-stage, innovative companies in India and Southeast Asia.
B Capital formerly supported growth-stage SaaS businesses, and it now intends to broaden its investment portfolio to include early-stage bets made across the globe, especially in India and Southeast Asia.
In an interview from last year, Mohla stated that B Capital anticipates that 60% of its early-stage investments in India and Southeast Asia will be in SaaS, healthcare, and business-to-business (B2B) platforms.
He added that there is no single target nation or location for the investments and that it will rely on the opportunities available. Fintech companies and enablers in the B2B arena will make up the remaining portion.
MoEngage is a SaaS platform that enables insights-based consumer engagement, and B Capital was a primary investment in this project in India. The company has also made other investments in India, including in the B2B marketplace for packaging supplies Bizongo and the B2B tech-enabled logistics business BlackBuck.
In addition, B Capital has invested in Byju’s, a leader in edtech.
The company, which manages assets totaling $6.3 billion across several funds, focuses on venture development investments from seed to late stages, primarily in the business, financial technology, and healthcare industries.
Additionally, it has a strategic alliance with Boston Consulting Group and works in nine locations across the US and Asia (BCG).
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