IvyCap Ventures' debut fund makes first close at $19M; investing $4.5M in two companies

IvyCap Ventures Advisors, started by former Ajay Piramal Group executive Vikram Gupta, has made a first close for its debut fund IvyCap Ventures Trust Fund - I, at Rs 105 crore ($19 million) and is set to invest Rs 25 crore ($4.54 million) in two target companies.

One of these companies provides agri-related information to rural focused business and farmers and has been on a high growth path in the past four years. This target company recorded a topline of Rs 12 crore in CY 11 and aims to reach Rs 22 crore for CY 12. The company has already covered more than a million farmers across 35,000 villages in 13 states.

Vikram Gupta, founder and managing partner, IvyCap Ventures declined to share names of the company. He told VCCircle, "Our second investment is in a company that is engaged in remote technology support."

VCCircle was the first to report the first close of IvyCap's debut fund in May 2012.

Out of Rs 105 crore, IvyCap raised Rs 65 crore from five financial institutions including three large PSU banks, another large FI and a government department. The balance Rs 40 crore has come from IIT Alumni Trust, the anchor investor in IvyCap. The fund reached a first close amidst adverse fund-raising environment.

IvyCap is now looking at raising the balance amount of Rs 95 crore for the fund and expects to close in another three months.

Gupta said, "Rs 200 crore is the minimum fund size, which may go up to Rs 400 crore, as we have the greenshoe option and depending on the investor interest, which has been positive so far. The additional amount will be raised from institutional and individual investors."

The fund is chasing investments across healthcare, energy, food/agriculture based businesses, and technology, with special emphasis on the micro, medium and small enterprises, with broad deal size between Rs 2-40 crore.

Securities and Exchange Board of India registered IvyCap Ventures Trust Fund is focused on entrepreneurs with professional backgrounds from premier Indian educational institutions like IITs and IIMs.

The fund is being chaired by former Union Home & Commerce Secretary, G.K.Pillai, himself an alumnus of IIT Madras.

The fund's advisory members include Arjun Malhotra, co-founder of HCL Technologies, Pradeep Gupta, Chairm and and Managing Director of CyberMedia, Ashank Desai, Co-founder of Mastek Limited, Nishith Desai, founder of Nishith Desai Associates, an international law firm and Bhagirat Merchant, former President of Bombay Stock Exchange as well as Deans and Professors of IITs.

There are 20 mentors on the board of IvyCap.

Prior to starting IvyCap, Gupta has worked with India Venture Advisors, Piramal Healthcare Ltd., Lupin, Dr Reddy's and IBM. He has also promoted a consulting firm, ProSource Group.

(Edited by Prem Udayabhanu)