Tran­sit Cap in talks to raise de­but fund of up to $60 mil­lion

Mint ST - - DEALS - Sri­ram.m@livemint.com MUM­BAI

Cross-bor­der ven­ture cap­i­tal (VC) firm Tran­sit Cap­i­tal is in talks to raise its de­but fund and is tar­get­ing a corpus of $50-60 mil­lion, two peo­ple aware of the devel­op­ment said.

“The fund will fo­cus on in­vest­ing in tech start-ups that have a cross-bor­der an­gle. These might be start-ups based over­seas but with a big user base here in In­dia or those that have back-end op­er­a­tions here,” said one of the two per­sons cited above, re­quest­ing anonymity as the talks are pri­vate.

Tran­sit Cap­i­tal is headed by Ku­mar Shah, who was pre­vi­ously as­so­ci­ated with mo­bile phone maker Mi­cro­max as its head of mergers and ac­qui­si­tions. The firm was spun out of Mi­cro­max’s cor­po­rate ven­ture cap­i­tal pro­gramme.

“The strat­egy at Tran­sit Cap­i­tal is to back busi­ness mod­els that can work across mul­ti­ple ge­ogra­phies. The strat­egy is sim­i­lar to the in­vest­ments that Shah made with Mi­cro­max,” the per­son cited above added.

Shah de­clined to com­ment. Mi­cro­max, which started

Mar­ket strat­egy

in­vest­ing in start-ups in 2014, has a port­fo­lio that in­cludes mu­sic stream­ing web­site Gaana, travel book­ing plat­form Ix­igo, and Health­i­fyme, an on­line weight-loss and well­ness plat­form.

Tran­sit is the lat­est en­trant into the cross-bor­der ven­ture in­vest­ing space in In­dia, which al­ready has a bunch of in­vestors in­clud­ing home­grown VC funds Ivy­cap and Uni­corn Ven­tures. In June, Uni­corn In­dia Ven­tures an­nounced a cross-bor­der fund to in­vest in Uk-based start-ups in part­ner­ship with As­cen­sion Ven­tures, a Uk-based ven­ture fund. It plans to raise up to £5 mil­lion per year to in­vest in firms build­ing prod­ucts and ser­vices rel­e­vant to the In­dian mar­ket.

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