Filter Capital Raises ₹800 Crore for Growth-Stage Tech Investments in India

Filter Capital, a Mumbai-based investment firm, has successfully closed its first fund, Filter Capital India Fund I, at ₹800 crore (approximately $100 million). This marks a significant milestone for the firm, allowing them to fuel the growth of promising tech startups in India.

Focus on Growth-Stage Investments

Filter Capital targets Series B and C funding rounds, aiming to invest in 8-10 companies from this inaugural fund. They focus on IT services, SaaS solutions, and technology-driven businesses across consumer, financial, and business service sectors. The average investment size per company ranges from ₹60 crore to ₹100 crore ($7.2 million to $12 million).

Experienced Team and Diverse Investor Base

The founders, Nitin Nayar and Sumit Sinha, boast extensive experience in the Indian venture capital landscape. Their combined expertise includes working with prominent firms like Warburg Pincus, Temasek Holdings, and Multiples Alternate Asset Management.

The fund itself has attracted a diverse set of investors. Sixty percent of the capital commitments come from domestic sources, including leading Indian institutional investors and family offices such as HDFC Fund of Funds, SIDBI, and the DSP family office. International investors contribute the remaining 40%, with notable figures like Akash Prakash (founder of Amansa Capital) and Dream11 CEO Harsh Jain participating.

Early Investments Showcase Focus

Filter Capital has already deployed over 30% of its corpus across four companies: Capillary Technologies, Chalo Mobility, LoadShare Networks, and THB. These investments demonstrate their alignment with the targeted sectors.

Why Series B/C Focus?

Nayar and Sinha believe Series B and C companies offer the most compelling investment opportunities. By this stage, businesses have gained traction but haven't yet received widespread market recognition. Additionally, the founders' experience in writing large checks for established companies like CarTrade and Quikr positions them well to evaluate and invest in these growth-stage ventures.

Building a Strong Portfolio with Disciplined Approach

Filter Capital prioritizes a concentrated portfolio, aiming for 8-10 well-chosen startups. This allows them to focus resources and expertise on each investment. Their strategy emphasizes risk-reward balance, seeking companies with strong potential for returns while minimizing downside risk. This translates to a disciplined approach towards valuations, ensuring they enter deals at attractive entry points.

Looking Ahead: Growth and Continued Investment

With a team of seven currently, Filter Capital plans to allocate 75% of their fund towards initial investments, reserving the remaining 25% for potential follow-on funding in their portfolio companies. As they move forward, Filter Capital is poised to play a key role in shaping the growth trajectory of innovative tech companies in India.

This news is likely to be of interest to entrepreneurs seeking growth capital, investors in the Indian tech space, and those following the venture capital industry. Filter Capital's approach highlights the growing focus on Series B and C funding rounds in India, where experienced investors can provide crucial support to fuel the next generation of tech leaders.