By Salman SH
Prime Venture Partners, an early-stage India-focused venture capital fund, on Thursday announced the final close of its fourth fund of $120 million. The fund was oversubscribed and has exceeded its target of $100 million in commitments.
Prime Venture usually invests in disruptive technology start-ups across the fin-tech, ed-tech, health-tech, consumer internet and global SaaS segments. In addition to prior focus areas, the firm has expanded its portfolio into new areas, notably EVs, B2B, Web3 and gaming infrastructure platforms.
In a statement on Thursday, Prime said that will continue to focus on being the first institutional investor in companies, maintaining its focus on early-stage technology start-ups.
With this closing, the new fund takes the total capital under management across all Prime Venture funds to over $250 million.
In addition to existing investors, Fund IV is backed by International Finance Corporation (IFC), part of the World Bank Group, a top-tier university endowment, a top-tier fund of funds and several global technology entrepreneurs. Prime said that more than 90% of companies backed by it have gone on to raise follow-on capital led by marquee investors in India and globally within 18 months and achieve strong product-market fit, follow-on rounds, profitability or exits with meaningful outcomes to founders.
Funds I to III have already made commitments across 32 companies spanning sectors such as fin-tech, healthcare, SaaS, education and logistics. Prime claims that its Fund I had delivered a 4X return to all its limited partners. Over the past decade, Prime has been the first institutional investor and built up one of the largest portfolios of fintech start-ups including Niyo, Ezetap,Freo, KredX and others. Additionally, during the past 12 months, three of Prime’s early fin-tech investments were acquired by marquee brands. These include the acquisition of business expense, payments and travel management platform Happay by Cred for $180 million, financial operations start-up Recko by Stripe, and retail-technology start-up Perpule by Amazon.
Other notable investments by Prime include Quizizz, an ed-tech platform used by more than 100 million students in 120 countries, MFine, a leading telemedicine and home diagnostics provider, MyGate, a gated community operating systems, and Dozee, a start-up that offers remote patient monitoring solutions.
“We greatly appreciate and are humbled by the unambiguous support and confidence of our long-time LPs and new investors, which allowed us to complete an oversubscribed fundraise. With Fund IV, Prime VP is well-positioned to back a new group of category-defining technology start-ups and inspiring entrepreneurs in India. Fund IV is already off to an exciting start and we couldn’t be more optimistic about the depth of the entrepreneurial talent, and increasing level of ambition among the founders in India,” Amit Somani, managing partner, Prime Venture Partners, said in a statement.