Vertex Ventures Raises $541 Million for Fifth Fund, Includes Support for Female-Led Startups
- ByStartupStory | September 12, 2023
Vertex Ventures Southeast Asia and India, a venture capital (VC) firm, has successfully raised $541 million for its fifth fund, contributing to the growing pool of unallocated early-stage VC funds.
The fund received backing from its existing limited partners (LPs), including sovereign wealth funds, financial institutions, corporates, and family offices across Asia and Europe. Additionally, new LPs such as Japan Investment Corporation (JIC), International Finance Corporation (IFC), and DEG (German Development Finance Institution) have joined the fund.
Within the fund’s corpus, there is a designated co-investment fund of $50 million, specifically allocated to support startups led by female founders. This move aligns with Vertex Ventures’ commitment to fostering opportunities for women entrepreneurs, as over 35 percent of the startups in its Fund IV portfolio already have at least one female founder.
Initially targeting $450 million for its fifth fund, Vertex Ventures Southeast Asia and India exceeded expectations, raising a fund that is 80 percent larger than its fourth fund, which was secured in 2019, amounting to approximately $305 million.
“This fundraiser is a testament to the quality of opportunities in the Indian and Southeast Asian markets. The macro opportunity is palpable, but what excites us more is the continuing maturity of the ecosystem and the quality of founders we are working with in building category-defining companies,” said Piyush Kharbanda, General Partner of Vertex Ventures Southeast Asia and India.
“Especially in India, we are working with founders tackling very interesting problems across socioeconomic strata in India and building great products for the world. This, combined with our proven track record of adding value to our portfolio companies, gives us a unique positioning in our markets and we are excited about the path ahead,” he added.
Vertex Ventures Southeast Asia and India has delivered strong cash returns to its LPs through successful exits from investments in companies like Grab, FirstCry, XpressBees, and Recko, among others.
“Our earlier funds have had superior cash-on-cash returns and are outperforming benchmarks. This track record led most of our investors from VVSEAI Fund IV to return as investors in VVSEAI Fund V and increase their allocation. In addition, we expanded our total investor base significantly and are happy to welcome all our Limited Partners,” said Ben Mathias, Managing Partner of Vertex Ventures Southeast Asia and India.
Vertex Ventures Southeast Asia and India, one of six major funds in Vertex’s global network of venture capital funds, focuses on startups seeking early-stage institutional venture capital funding in Southeast Asia and India, primarily in Singapore, India, Indonesia, Thailand, Vietnam, Malaysia, and other emerging hubs in the region. The VC has invested in sectors such as enterprise technology, fintech, consumer internet, digital health, sustainability, and mobility.
Vertex Ventures Southeast Asia and India operates with eight investing partners and a total of 22 investing staff across multiple offices. In India, the VC has backed platforms like Licious (online meat-selling), KukuFM (vernacular audio), and Kissht (digital lending), among others.
This fundraising for Vertex Ventures comes at a time when several VCs, particularly early-stage investors, have raised substantial amounts of capital in recent years. However, many of these funds remain unallocated due to macroeconomic challenges worldwide. Since 2022, various VCs, including Peak XV, 3One4 Capital, Accel, Elevation Partners, Nexus Venture Partners, and Matrix Partners, have raised or launched India-focused funds.
Follow Startup Story
Related Posts
