PeerCapital Logs First Close of Debut Fund At ₹300 Crore

PeerCapital has completed the first close of its debut fund at ₹300 crore ($37.5 million). PeerCapital is an Indian venture capital (VC) firm which is based in Bengaluru.

Pahwa stated that the fund is set up as an India Category II Alternative Investment Fund (AIF), and that the final close is scheduled for September 2023, bringing the fund’s total size to INR 600 Cr ($75 Mn).

A green shoe option of ₹ 300 Cr ($37.5 Mn) is also available, which may increase the fund’s overall size to ₹ 900 Cr ($112.5 Mn).

PeerCapital wants to use up to $2 million in early checks to deploy behind entrepreneurs in the seed to Series A stage.

These are the phases where PeerCapital’s ethos, value beyond the capital, enters the picture. 

Regarding the decision of the initial stages, Pahwa said, “This is the space where we feel the talents and value that we are capable of bringing are important.

Fintech, healthtech, enterprisetech, climate tech, and consumer tech enablers will be the main areas of investment for the fund. 

Although we have a very specific subsegment thesis for each of these, Pahwa continued, “we would be investing in these broad segments.”

PeerCapital plans to use its first fund to invest in 30 early-stage firms. The managing partner further stated that the venture capital firm would set aside a portion of the funds raised to make additional investments in particular firms.

The managing partner continued, “[PeerCapital] will want to support innovators who are developing for India, for the world.

As managing partners of PeerCapital, Pahwa is accompanied by Rohit MA, the former MD and cofounder of Cloudnine Group of Hospitals, and Karthik Prabhakar, the former MD of growth-stage VC company Chiratae Ventures.

Before the first close of PeerCapital’s fund, Pahwa and Rohit made individual investments in 30 businesses; as of now, three of those companies are now part of the VC firm’s portfolio. 

These include the managed B2B marketplace Saveo, the influencer marketing platform One Impression, and the home furnishings marketplace Vaaree.

The Bengaluru-based VC business also invests in early-stage companies like social media platform Koo and investment platform Jar. 

In addition, the VC company has also invested in the cloud-based workplace management tool UrSpayce, the social commerce platform Furrl, and the provider of virtual and secondary contact numbers services, Doosra.

The news from PeerCapital comes after investors disclosed or raised 126 funds totaling $18.3 Billion in 2022, totaling ₹ 5,750 Cr ($695.6 Mn) in 2023, including venture capital firms, angel networks, and venture debt businesses in India.

This year saw the introduction of several significant funds, including Amazon’s $250 million fund, 360 ONE and Mumbai Angels’ two new funds for ₹ 1,300 crore ($157.3 crore), Lighthouse Canton, and Z3 Partners’ funds worth INR 550 crore apiece.

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