Filter Capital Successfully Closes Maiden Fund at Rs 800 Crore to Support Growth-Stage Tech Firms
- ByStartupStory | April 8, 2024
Filter Capital, a pioneering investment firm specializing in technology ventures and led by former executives from Warburg Pincus and Multiples Private Equity, proudly announces the final close of its inaugural fund at Rs 800 crore (approximately $96 million).
The Mumbai-based firm, which focuses on nurturing growth-stage companies, garnered an impressive 60% of its capital commitments from domestic limited partners (LPs), with international investors contributing the remaining portion. Notable LPs include esteemed institutional investors and family offices such as HDFC Fund of Funds, Small Industries Development Bank of India, DSP family office, Akash Prakash, founder of Amansa Capital, and Harsh Jain, cofounder of Dream Sports.
Filter Capital’s strategy revolves around leading and co-leading Series B and C funding rounds within the $15-20 million range, as stated by Nitin Nayar, cofounder and managing director. “With these stages, we tend to mean that there is a stable team in place, there is a clear product-market fit and there are enough customers from whom you can extrapolate the size of the market,” Nayar explained. The firm anticipates making four to six additional investments from this fund.
Established in 2018 by Nayar and later joined by Sumit Sinha in 2019, both seasoned veterans with nearly two decades of private equity experience, notably at Warburg Pincus, Filter Capital initiated the fundraising for its first fund in 2021, achieving a first close of Rs 330 crore a year later.
Filter Capital India Fund I has already allocated approximately Rs 225 crore to four entities, namely enterprise loyalty software provider Capillary Technologies, bus mobility platform Chalo Mobility, ecommerce logistics services firm LoadShare Networks, and healthcare enterprise software company THB.
“We seek to partner with capable entrepreneurs whose businesses have reached an inflection point and are poised for rapid growth,” highlighted Sinha, cofounder, and managing partner.
Nayar emphasized the firm’s focus on investing in software services-linked businesses, with expectations of about two-thirds of its investments being deployed in this sector. “Our investments are typically a five-year hold. Our view is that eventually these companies will start maturing and we can start returning capital to our investors. We can also start planning for our second fund, which I expect will be two-three years from now,” he added.
In parallel with Filter Capital’s successful fund closure, the past year has seen notable achievements in the growth-stage tech investment landscape, with Vertex Ventures Southeast Asia and India finalizing its fifth fund at $541 million, and B Capital closing its second Opportunities Fund at $750 million in March.
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