TVS Capital's biggest fund yet could gamble on ‘zero-stage’ bets

The Chennai-based capitalist intends to denote the archetypal adjacent for its caller money adjacent period and volition look to stake connected ‘zero-stage’ companies, which involves backing professionals oregon entrepreneurs launching caller startups, said a idiosyncratic acquainted with the company’s plans.

The 4th money volition person a full corpus of ₹3,000 crore, surpassing the size of TVS Capital’s ₹1,600-crore 3rd fund.

First adjacent is an investing milestone aft which backstage equity and task superior firms tin commencement investing. TVS Capital received support for its 4th money from the Securities and Exchange Board of India successful January.

“The steadfast whitethorn backmost promising individuals who person demonstrated execution capableness and are looking to commencement afresh," the idiosyncratic mentioned supra said, requesting anonymity.

TVS Capital volition proceed placing concentrated bets connected fiscal services companies and startups catering to different businesses. About 70% of the 4th fund’s portfolio volition beryllium fiscal services companies, and the remainder business-to-business startups, this idiosyncratic said.

“These are areas wherever the steadfast has developed heavy assemblage expertise in," helium said.

TVS Capital has invested successful aggregate fintech startups from its 3rd fund. Among these are Digit Insurance, Insurance Dekho, Five Star Business Finance, Suryoday Small Finance Bank, DCB Ltd, Yubi (formerly CredAvenue), and PhonePe. The steadfast besides backed proviso concatenation solutions supplier Leap India from its 3rd fund.

TVS Capital has since sold its involvement successful Suryoday, DCB, and Leap, and made a partial exit from Five Star Business Finance.

“TVS Capital has afloat exited funds 1 and 2, and made respective exits from money 3," the idiosyncratic cited supra said.

TVS Capital declined to remark connected plans for its 4th fund.

In caller years, TVS Capital has been strengthening its halfway enactment team. In January past year, it appointed erstwhile McKinsey enforcement Naveen Unni and erstwhile Accenture enforcement Krishna Ramachandran arsenic managing partners, and successful December named e-commerce seasoned Kal Raman arsenic an adviser. 

Earlier successful October 2022, TVS Capital appointed Anuradha Ramachandran from Flourish Ventures arsenic managing spouse for investments. 

Apart from these, successful November TVS Capital onboarded Ramesh Iyer, managing manager and vice president of Mahindra Finance Ltd, arsenic a committee member.