Prime Venture Partners Closes Fifth Fund At $100 Million

Prime Venture Partners, a venture capital firm, has launched its fifth fund with $100 million to invest in early-stage startups in India.

The firm announced that over 80% of the fund has already been committed by its investors. Prime Venture Partners plans to begin using the fund's capital in the second half of 2025.

Sanjay Swamy, cofounder of Prime Venture Partners, said that the fund has already secured 80% of its $100 million target from global investors, including family offices, trusts, fund of funds and university endowments from the US, Europe and the Gulf region.

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The fund aims to support 16-18 startups. Initially, the firm will invest between $2 million and $4 million, but it could invest up to $12 million in each company over multiple funding rounds.

The fund will focus on sectors like fintech, artificial intelligence (AI), global SaaS and businesses digitizing the Indian economy.

Currently, Prime Venture Partners has not yet fully used its fourth fund, which is expected to be fully invested by mid-2025. Startups funded by the fourth fund include FinAG, Hitwicket, Ocean, Navdan and Metafin. The firm has also invested in TheBox, a WhatsApp-based platform for small businesses and Alchemy, a B2B cross-border chemicals marketplace.

“We will be continuing to invest from our fourth fund, which we raised in 2021, in companies that have done well. We stopped making new investments from the (fourth) fund in the last quarter of 2024 and now we will be backing companies that have done well, which will go on till the second quarter of this year,” Swamy said.

“For us, what matters is making a new investment and that will likely happen in the second half of 2025. We typically make five investments every year, and we will be looking at sectors like deeptech, AI, global SaaS, etc, ” he added.

He said that the VC firm's first fund gave about 4.7 times the investment back in returns. The second and third funds also gave good returns, though he didn't share exact numbers. He mentioned that while the firm has started returning some capital from Fund 3, he prefers not to rush selling investments in portfolio companies.

Prime has successfully exited investments in several companies, including Tracxn, which went public, Recko (acquired by US payment giant Stripe), Happay (sold to Cred), Ezetap (acquired by Razorpay) and Perpule (bought by Amazon).

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