Mumbai-based impact investor Asha Ventures has raised Rs 400 crore (about $48 million at the current exchange rate) for its debut fund, which will have a total corpus of Rs 750 crore (about $90 million).
The fund plans to make Series A investments in startups pursuing sustainability and inclusion themes—in the education, financial services, healthcare, climate and agriculture sectors—with cheque sizes in the range of $2 million to $10 million, managing partner Amit Mehta told ET.
Asha Ventures plans to deploy funds into four to five startups every year for about four years, with the tenure of the fund at 8.5 years, Mehta said. He added that the fund’s final close of the remaining Rs 350 crore will be completed within the next 12 months.
The Mumbai-headquartered firm was established by former Morgan Stanley India head and president Vikram Gandhi and former Genpact president and chief executive Pramod Bhasin.
Bhasin, founder and former CEO of Genpact, also previously served as a chief executive of GE Capital in India and Asia. He was also chairman of Clix Capital, a non-banking financial company. Bhasin also serves as an advisor to firms such as Kedaara.
“We believe this is the perfect time for technology-led inclusive funding models to be built in India, to fund businesses that are solving for key needs around financial inclusion, healthcare and employability,” said Bhasin.
Gandhi is currently a faculty member of Harvard Business School, and also a senior advisor to The Canada Pension Plan Investment Board. He was previously vice chairman of investment banking and global head of the financial institutions business for Credit Suisse in New York and Hong Kong.
“At Asha Ventures, we have demonstrated, since 2015, that doing good while doing well is a scalable investment thesis… We are very excited about the opportunity that lies ahead, and the role we can play in shaping a more equitable and sustainable future for the country,” Gandhi said.
In 2015, Gandhi and Bhasin got together to invest in businesses building for the “middle class”, Mehta said. They went on to invest in companies such as education-focused financier Varthana and Vastu Housing Finance Corporation.
After 2016, the duo went on to invest in startups, including TrueMeds and Adda247, which focused on the same thesis of inclusion but in the internet space.
“The idea was to scale up the platform and raise a proper fund, which is what we have done,” Mehta said.
The fund’s limited partners include Small Industries Development Bank of India (SIDBI), Self Reliant India (SRI) and the family offices of Ajay Parekh of Pidilite Industries and Nimesh Kampani of JM Financial Group.
“India’s emerging middle class of 500 million people requires innovative solutions to get access to equitable opportunity. Startups are a key driver of this innovation,” said S Ramann, chairman and managing director of SIDBI.
