3one4 Capital announce the closure of its fourth early-stage fund at $200 mn (INR 1600 cr)

3one4 Capital announce the closure of its fourth early-stage fund (sixth fund overall) at $200 million (INR 1600 crore).

Around 50% of the capital in the new fund has come from Indian banks and mutual funds, said Pranav Pai, founding partner at 3one4 Capital.

The remaining limited partners (LP), who make investments in venture funds, include US university endowments, international sovereign funds, multinational enterprises, insurance companies, Indian businesses, and powerful family members. According to Pai, who spoke with ET, up to 90% of the funds was raised from institutional investors.

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Despite market challenges, the fund was oversubscribed to $250 million (INR 2000 crore) within just 2.5 months, a testament to the unwavering confidence placed in us by leading global and Indian investors.

“We launched the process for Fund IV in January and within two-and-a-half months, we had a commitment of $250 million – which is more than our last fund. Given our approach and the performance in the early-stage space and the changes we are seeing in the ecosystem, we took the decision to keep it a $200 million fund,” said Pai on the new fund.

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Partners at the fund include Pranav Pai, his brother Siddarth Pai, Anurag Ramdasan, and Nruthya Madappa.

“Deployment has not been a challenge. We see about 7,000 firms and invest in 8-10 firms typically. In 2022, which was again a slow year for VCs, we still did eight-odd deals. We are still able to deploy enough capital. With the new fund, two-three investments are already in the pipeline,” Ramdasan said, while referring to the current slowdown in deal activity across stages.

About 3one4 Capital

3one4 Capital is an early-stage venture capital firm based in Bangalore, India. The firm works in select market categories and in the intersection of adjacencies that are large, growing, and ready for unique products and services. The fund’s focus areas include fintech, consumer products, SaaS, digital media, climate tech, and digital health.

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