Nexus India Capital has closed a $100 million venture capital fund to invest in India. Nexus plans to invest in technology start-ups and companies with business models not driven by technology.
The $100 million fund has invested in five innovative companies to date, including $5 million each in the Mumbai-based mobile2Win, a mobile value-added services company, and the Andhra Pradesh-based DimDim, a web collaboration start-up.
The fund, which generally funds around 2-3 companies every quarter, is expected to invest in three more companies in July. The companies are involved in outsourcing and consumer technology.
Nexus Capital, which expects its portfolio to grow to $20-25 million over the next two to three years, invests in the range of $500,000 to $10 million in companies.
The fund's investors include top tier institutions and strategic family offices from North America, Europe and Asia.
The fund and its portfolio companies will be advised by entrepreneurs and investors in the technology, media, outsourced services, retail and consumer sectors.
The founders of the fund and its advisory companies include industry veterans and successful venture investors, Naren Gupta, Sandeep Singhal, and Suvir Sujan. Bill Davidow, senior executive, Intel, and co-founder of a highly successful venture fund is a special advisor to Nexus.
Naren Gupta founded embedded systems software company Integrated Systems Inc in 1980 and was the president/ CEO of the company for 15 years.
Integrated Systems later merged with WindRiver Systems, where he serves as vice-chairman. Gupta has invested in several successful technology ventures that include Speedera Networks, E-Tek Dynamics, Numerical Technologies and RightNow.
Sandeep Singhal co-founded the leading Indian health care outsourced services company, Medusind Solutions, and is a well-recognised leader in the Indian venture capital space.
Prior to Medusind, Singhal founded eVentures India, a venture capital fund that invested in Indian industry leaders including Makemytrip.com, Contest2win.com, Customer Asset (now part of FirstSource), Netmagic, and Mentorix.
Suvir Sujan co-founded Baazee.com, India's leading e-commerce company that merged with eBay to form eBay India and has also been an active advisor and angel investor to consumer internet, wireless and retail ventures.
"Innovation in India is going to come from many different sectors and Nexus plans to make investments in early and expansion stage companies led by passionate founders and executives," said Gupta.
"After the first wave of investing in companies based on cost arbitrage, India is finally ready for venture capital in companies driven by innovation. Some of the best employees at companies in India such as Google, Microsoft and Intel are thinking about starting their own companies," said Singhal.
Added Suvir Sujan, "Professionals in large Indian corporations and in companies around the world are stepping into Indian entrepreneurial ventures targeting the burgeoning domestic economy. They need risk capital and the right time to back them is now."