Saama Capital, a Bangalore-based venture capital fund, has closed its fourth fund after raising $100 million. Saama Capital has stated that it will not raise over $100 million for any fund as delivering returns to the Limited Partners becomes tough.
With this new fund, the firm is expected to continue its focus on consumer brands, software, and fin-tech segment. The latest fund would also be eying risks on consumer trademarks, financial technology segments and software services.
The firm is now looking to make early and growth stage investments, along with occasional investments at the seed stage. It typically writes cheques between $1 million and $3 million.
Saama Capital was founded in 2011 by Ash Lilani and Suresh Shanmugham. In its first fund, the venture capital firm had raised $54 million, which is expected to give 4-5 times return following its exit from Paytm, Sula Vineyards, Applabs, Tutorvista, SKS Microfinance, Shriram EPC and Prizm Payments.
In the second fund, it had raised $26 million and exited from Snapdeal, Shubham Housing Finance, and Agreeya Mobility. It was followed by a third fund for which it raised $58 million.
With three funds since its beginning in 2012, the VC firm has witnessed some good exits. It had recorded about 52X profit on its Rs 12 crore bet on Paytm. One of its most successful and timely exits was from Snapdeal at a valuation of $6.5 billion, which fell to around $1 billion after one year of its exit.
Fundraising activity among India-focused venture capital firms has increased in initial months of this year. Recently, Bengaluru-based early-stage investor Unitus Seed Fund raised $12.9 million for its second investment vehicle, which has a target corpus of $46 million.
Last month, Venture debt fund Alteria Capital announced the first close of its maiden venture debt fund with a corpus of $123 million. Fireside Ventures, an early-stage consumer-focused venture fund, marked the final close of its debut fund at around $52 million, surpassing its target.