Prime Venture Partners raises $120 million towards final close of fourth fund

Prime Venture Partners has backed companies such as Quizizz, PlanetSpark, MyGate, Dozee and WheelsEye.

“The fund was oversubscribed and has exceeded its target of $100 million in commitments,” the release said. In addition to existing investors, Fund IV is backed by International Finance Corporation (IFC), a university endowment fund, a fund of funds, and several global technology entrepreneurs.

The firm will look to invest in sectors such as fintech, edtech, healthtech, consumer internet and global SaaS (software as a service).

“In addition to prior focus areas, the firm has expanded its portfolio into new areas, notably, EVs, B2B, Web3 and gaming infrastructure platforms,” the firm said.

Across its four funds, Prime Venture now has around $250 million of assets under management.

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It had closed its first fund worth $8 million in 2012, and second fund worth $46 million in 2016. It raised a third fund of $72 million in 2018 and a fourth fund of $100 million in 2021.

It has backed around 32 companies through its first three funds.

“Prime VP’s Fund I recently delivered more than 4x return to all its limited partners,” the release said. Earlier this year, Foundation Private Equity (FPE), an Asia-focused secondary fund, bought out all investors in Prime VP’s first fund, extending the fund’s life by four years.

According to the firm, more than 90% of companies backed by Prime VP at the seed stage go on to raise follow-on capital within 18 months.

Prime VP is an India-focused early stage firm started in 2012 with an Indian advisory office led by Shripati Acharya, Sanjay Swamy, Bala Parthasarathy and Amit Somani.

India-focused funds that have raised capital in recent times include A91 Partners, Stellaris Partners, 3one4 Capital, Chiratae, Ivy Cap and Blume. With rupee capital now competing with global pools of capital, it is beginning to play a meaningful role in fostering entrepreneurship in India.