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
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.