Win­ter is End­ing, IvyCap says VCs are Com­ing Back

IvyCap sees re­bound in VC deals, with fresh in­vestors com­ing to the fray by year-end

The Economic Times - - Disruption: - Taslima.Khan@ times­group.com

New Delhi: IvyCap Ven­tures, which re­cently made the first close worth .₹ 300 crore of its tar­geted .₹ 600 crore Fund II, ex­pects a turn­around in ven­ture cap­i­tal deals, with fresh in­vestors com­ing in to the fray by the end of the year. The fund, which is eye­ing early-stage op­por­tu­ni­ties from Fund II, is eye­ing a huge boom in fin­tech and new busi­ness mod­els in health­care.

Ivycap, which has re­cently in­vested in Fin­tech com­pany FTCash, plans to in­vest in about 25 star­tups at the seed-stage from Fund II. “In the first fund, we were very clear that we are not go­ing to touch seed­stage com­pa­nies, since our ten­ure was very limited. Now, we are se­ri­ously look­ing at early-stage op­por­tu­ni­ties with the sec­ond fund, which has a much longer ten­ure of 10 years. That was a good strat­egy be­cause we are now work­ing on an exit, which oth­er­wise would not have been pos­si­ble,” said Vikram Gupta, man­ag­ing part­ner at IvyCap Ven­tures.

Gupta says some of the cur­rent port­fo­lio com­pa­nies at Ivy are get­ting in­ter­est from global in­vestors for large cheques, which will cre­ate a pos­i­tive mo­men­tum to­wards the end of this year. “There is a fresh breed of in­vestors com­ing in. To­wards the end of this year, we will see new hedge funds or fundof-funds or pri­vate equity funds, who have not in­vested in In­dia be­fore, en­ter­ing the space. They are fish­ing for deals, how­ever at the right val­u­a­tion. Hence dili­gence cy­cles are longer than be­fore.” “Though we have mostly in­vested in tech­nol­ogy, health­care, agritech, ecom­merce and ecom­merce en­able­ments till now, we are now look­ing at health­care with much greater fo­cus. So far, largely two mod­els, the likes of Practo and Portea, have been funded heav­ily. But there are still huge gaps in techen­abled per­son­alised health­care ser­vices,” said Gupta, who is cur­rently screen­ing star­tups help­ing pa­tients man­age a par­tic­u­lar dis­ease like di­a­betes or those fo­cused on women’s health or on­col­ogy. “We are at the term-sheet stage with two star­tups op­er­at­ing sim­i­lar mod­els,” he said. “Fin­tech in my view has huge po­ten­tial in some ar­eas like pay­ments and loans. Once there is more clar­ity on reg­u­la­tions, you will see multi-bil­lion com­pa­nies emerg­ing. In a mat­ter of a year or two, there is a boom wait­ing to hap­pen,” Gupta said.

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