IDFC Alternatives, the private equity arm of IDFC group, and Parampara Capital, a venture capital firm, have come together to jointly launch the IDFC Parampara Early Stage Opportunities Fund – Series I, aimed at making early-stage investments across sectors.
The fund is targeting to raise R100 crore, IDFC Alternatives said in a statement on Tuesday. It added that it was in active discussions with both domestic and institutional investors. The closure of the fund is expected by March this year with both IDFC and Parampara contributing about 35-40% of the total corpus. The average investment size will be approximately R6-7 crore and Parampara Capital will be the investment manager to the fund. IDFC Alternatives will also participate in the funds’ investment committee and advisory board.
Jatin Desal, general partner, Paramapara Capital, said that the fund would seek to identify fintech opportunities in India. He added that the partnership would help to “extend IDFC’s domestic and global investor-base interested in investing in early-stage capital in technology in the country.”
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IDFC Alternatives is currently focused on infrastructure and real estate. With this latest fund, it will be adding early-stage investing as another asset class. The firm is one of India’s largest multi-asset fund managers with assets under management of approximately R17,000 crore. MK Sinha, managing Partner and CEO, IDFC Alternatives, said “this is another milestone for our business that has been expanding its footprint steadily.”
Parampara Capital has a fund called the Parampara Early Stage Opportunities Fund – Series I, which has an aggregate commitment of around $2 million (just over R12 crore), all of it in start-up technology solutions companies.
