The venture capital fund would focus on early-stage digital and consumer businesses across new-age brands, technology, enablers and platforms at seed and Series A stages
V3 Ventures has already invested in audio content platform Kuku FM and digital healthcare app Eka Care in India
Verlinvest has invested in brands including Oatly, Tony’s Chocolonely, BYJU’s, Sula Vineyards, and Purplle.com over the past 25 years
Early-stage venture capital fund V3 Ventures on Tuesday (April 4) said it has launched its operations in India and is looking to invest up to 100 Mn euros (approximately INR 896.5 Cr) in the country, Europe, and the US.
In India, V3 Ventures will be led by entrepreneur and investor Arjun Vaidya. The fund, backed by international investment company Verlinvest, will focus on early-stage digital and consumer businesses across new-age brands, technology, enablers and platforms at seed and Series A stages.
“While startup founders in India have many options for capital, what matters most is being backed by investors who understand the arduous nature of building much-loved, consumer brands. At V3, we have thorough experience in creating startups ourselves. This is the unique value add we’d like to bring to the table,” said Vaidya, cofounder and investment partner at V3 Ventures.
Vaidya founded India’s leading ayurvedic D2C brand Dr. Vaidya’s in 2016. In 2021, he joined Verlinvest to cofound V3 Ventures with London-based investor and entrepreneur Lopo Champalimaud. Vaidya operates from Mumbai and leads investments in Asia and India.
As part of Verlinvest’s community, V3 Ventures is able to leverage the global investment company’s network of partner companies, teams, and advisors, said the VC firm in a statement. Verlinvest has invested in brands including Oatly, Tony’s Chocolonely, BYJU’s, Sula Vineyards, and Purplle.com over the past 25 years.
The India operations of V3 Ventures have commenced at a time when the country’s startup ecosystem is reeling under the ongoing funding winter due to global macroeconomic uncertainties.
The funding winter, which began last year with the Russia-Ukraine war and rising inflation, is refusing to loosen its grip on the Indian startup ecosystem. The funding raised by Indian startups slumped 75% year-on-year (YoY) in Q1 2023.
As per Inc42’s Indian Tech Startup Funding Report Q1 2023, the country’s startups raised a total of $3 Bn in the last quarter as against $12 Bn in Q1 2022, with the number of deals declining 58% YoY to 213 in Q1 2023.
Amid the funding crunch, seed stage funding was at an eight-year high in 2022. However, the trend discontinued in Q1 2023, with seed funding declining 81% YoY to $180 Mn.