India Quotient returns its maiden fund in cash to limited partners, or sponsors, at a net multiple of 5.9x. The India-focussed seed-to-early-stage venture capital firm was launched in 2012 by Lunia and Madhukar Sinha with the aim of investing in startups that develop solutions tailored to India-specific problems.
The rupee-denominated first fund, which began investing in 2013, had a corpus of Rs 32 crore (around $6 million) and has backed 21 startups, including Sugar Cosmetics, Lendingkart, IIMjobs and 91mobiles.
The developments come when investors witness a massive fall in valuation globally and in India as well. Most startups have been going slow in their funding, specifically in the case of publicly listed tech stocks.
“With the return of this fund, we have been able to demonstrate liquidity in a very tight market and were able to give confidence in stated numbers. People don’t believe in startup valuations but when they become encashed, they start believing,” Lunia said.
The firm’s early sponsors include domestic high net-worth individuals such as Paytm founder Vijay Shekhar Sharma; Ronnie Screwvala, the co-founder and chairperson of ed-tech startup UpGrad and founder of venture fund Unilazer; and MakeMyTrip founder and chairman Deep Kalra.
Its later funds onboarded foreign investors such as Seattle-based Capria Ventures, Japanese financial services conglomerate Nippon and the UK-based Latitude Investment Management.
The list of India Quotient’s sponsors now includes a large Chinese institutional fund and some Singapore-based family offices.Other investors in India Quotient’s Fund-I are Times Internet, Ashish Goenka, Ravi Adusumalli, Ash Lilani, Omidyar and SIDBI.