TV Mohandas Pai Backed 3one4 Capital Launches Oversubscribed Fund II with 250Cr

Reliance Industries’s venture arm, cofounders of Infosys and several family offices have joined the fund as limited partners.

Initially Fund II had a target corpus of Rs 150 crore; the fund was fully subscribed to within a quarter of the fundraise initiated in 2017. With an oversubscribed interest in the fund, the fund managers decided to exercise the greenshoe option of an additional Rs 100 crore. The fund has now closed commitments for Rs 250 crore. The new fund will be officially launching tomorrow, 25 January, 2017.

With this new corpus, the team will look to enhance its deep involvement model across its investment domains and work more closely with the founding teams to launch new and important value propositions at scale. The fund will continue to focus on early stage ventures, with cheque sizes $250,000 and $2 million, and a high reserve ratio for follow-on funding.

Based in Bangalore and often touted as a VC firm backed by TV Mohandas Pai, 3one4 Capital was founded by Pranav Pai and Siddarth Pai, sons of the famed entrepreneur and investor. Fund I of 3one4 Capital was launched early in 2016 with a corpus of Rs 100 crore. Since then, the fund has built a deep portfolio across its investment focus areas spanning more than 40 companies.

Fund II has Limited Partners (LPs) who are well established and well known faces in the investor community. Anil Rai Gupta and Ameet Gupta (Havells promoters’ family office); Kris Gopalakrishnan (Cofounder, Infosys); Nandan Nilekani’s Family Office (Cofounder, Infosys); Narayana Murthy (Cofounder, Infosys) via Catamaran Ventures; Reliance Ventures (on behalf of Reliance Industries Ltd.); Srinivas Pulavarti (CIO, UCLA Investments) are some of the names among many others.

3one4 Capital’s focus areas include machine-driven actionable intelligence services for the enterprise; enterprise automation; ambient intelligence technologies; edtech; fintech; media and content development, and health. 3one4’s investments are biased towards companies exploiting technology to create, grow, or dominate large markets in India. The fund also invests a portion of its capital in US-focused companies that have feedforward effects into the themes being pursued in India.

The VC firm’s portfolio includes Tracxn, Faircent, Pocket Aces and Tripoto.

Jayant Paleti, founder of DarwinBox said, "As a founder, working with Pranav, Siddarth, and the 3one4 team has been an incredible experience. One thing that truly stands out is that they are probably amongst the few Indian VC teams that truly understand tech not just from a macro standpoint but at a highly granular level. Their inputs to our scale-up have been invaluable."

Anand Anandkumar of Bugworks concluded, “As a cross-border startup in deep science, we are building in an area that has very few financial backers from India. It fascinates me that they have so much interest in the work we do and are our voice in many forums which attract high-quality investors and prospective partners. I do not doubt that 3one4 will become a premier cross-border investment firm and help create many great global companies.”

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