Gemba Capital is a micro venture capital firm registered under SEBI that announced its plans to launch the Rs 250 crore second fund including a green shoe option of Rs 50 crore. The startup intends to use these funds to scale the companies across the B2B, consumer tech, and fintech sectors. The VC firm counts Grip Invest, Navadhan, Plum, Strata, Zuper, Wint Health, and LightFury as its portfolio companies.
This SEBI-registered VC firm plans to invest this second fund in around 30 early-stage platform-first businesses across B2B platforms, consumer tech, and fintech companies with an average ticket size of Rs 5 crore. It will reserve 30 percent of the corpus for follow-on investments. The company has invested in more than 50 startups and 120 founders across fintech, B2B, and consumer tech platforms since its inception. The company expects to achieve the goal and make a final close of the fund by the end of 2024.
The General Partner at Gemba Capital, Adith Podhar, mentioned that the VC company started by investing in proprietary Capital and investing with the first fund of Rs 70 crore. Podhar said that the VC firm is now looking to partner with institutional LPs to fund this Rs 250 crore second fund. The Bengaluru-based investment company launched its first fund with a target corpus of Rs 70 crore in 2022. This fund was raised from the participation of its family offices, CXOs, and founders. This first funding round offered the startups with a first cheque size of Rs 2 crore.
The company claims to be the leading institutional small Venture Capital fund across India at the seed stage. Gemba Capital specializes in making investments in pre-seed and seed-stage scalable tech startups. The Principal of Gemba Capital, Govind Lohia, highlights that the fund has supported its portfolio companies, including ClickPost, Showroom, Plum, Grip Invest, and LightFury, across various areas, including strategic planning, customer introductions, and fundraising.This development came after Indian startups encountered difficulties during funding rounds. This month, Next Bharat Ventures also launched Rs 340 crore India-focused funds to focus on early-stage Indian startups. The first cohort will start in October of this year, and the investment will be made through a residency program.
Conclusion
Bengaluru-based micro Venture Capital firm Gemba Capital aims to back Indian startups in the consumer tech, fintech, and B2B sectors. The SEBI-registered company announced its plans to launch a second fund of Rs 250 crore, including a green shoe option of Rs 50 crore. The company intends to invest in around 30 early-stage platform-first businesses across these areas.
The company generally makes investments in seed and pre-seed stage startups. Gemba Capital targets to make a final close for this fund by the end of this year. This fund will mainly focus on startups in the sectors, including B2B platforms, fintech, and consumer tech. The VC firm has invested in around 120 founders and 50 startups to date.
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