Stellaris Venture Partners, a prominent venture capital firm based in Bengaluru, has successfully closed its third fund, raising $300 million to support early-stage startups. This new fund aims to invest in 25-30 startups over the next three years, focusing on technology-driven solutions in various sectors, including AI, consumer goods, and digital infrastructure.

Key Takeaways

• Stellaris Venture Partners has closed its third fund at $300 million.
• The firm plans to invest in 25-30 early-stage startups over the next three years.
• Key investment themes include AI, consumer businesses, and digital infrastructure.
• Stellaris now manages over $600 million in assets under management (AUM).

Overview Of The New Fund

The launch of this $300 million fund marks a significant milestone for Stellaris Venture Partners, which has previously raised $225 million and $90 million for its earlier funds. The firm has seen a substantial increase in deal flow and a rise in repeat entrepreneurs within India’s startup ecosystem, which has transformed dramatically in recent years.

Rahul Chowdhri, a partner at Stellaris, expressed excitement about backing founders who leverage technology to address pressing challenges in large markets. The firm has a history of investing in successful startups, including Mamaearth and Whatfix, and aims to continue this trend with its new fund.

Investment Strategy

Stellaris Venture Partners will maintain its core investment strategy, focusing on early-stage companies from seed to Series A rounds. The firm typically participates as a lead investor and supports its portfolio companies through multiple financing rounds. The average ticket size for seed stage deals ranges from $0.5 to $3 million, while Series A deals typically range from $3.5 to $10 million.

Focus Areas

The new fund will particularly target three key investment themes:

1. Artificial Intelligence (AI): Stellaris has shown a strong interest in AI-driven startups, with several companies in its portfolio already focusing on this area.
2. Consumer Businesses: The firm aims to back innovative consumer brands that are leveraging technology to enhance customer experiences.
3. Digital Infrastructure: Investments will also be directed towards companies that contribute to India’s digital public infrastructure, which is crucial for the country’s growth.

Recent Investments

Stellaris has already made several notable investments in recent months, including:

• Turno: An electric vehicle financing startup.
• Kiwi: A credit-on-UPI provider.
• Orbitshift: An AI subscription software provider.
• Goodscore: A credit improvement platform.
• Nestasia: A direct-to-consumer brand.

Leadership Changes

In conjunction with the fund’s launch, Stellaris has made key leadership appointments. Naman Lahoty has been elevated to partner, becoming the first non-founding partner at the firm. Other new appointments include Chetan GMS as CFO and Preseedha Premnath as general counsel. Vardhan Dharnidharka has also joined as an investment principal, focusing on AI and machine learning.

Conclusion

With the closing of its third fund, Stellaris Venture Partners is well-positioned to capitalize on the burgeoning startup ecosystem in India. The firm’s strategic focus on technology-driven solutions and its commitment to supporting early-stage companies will likely contribute to the growth of innovative startups in the region, further solidifying India’s reputation as a hub for venture capital investment.

Sources

• Stellaris closes $300 million third fund to boost early-stage startups – Times of India, Times of India.
• Stellaris Venture launches its largest ever $300 million fund | Company Business News, mint.
• Stellaris Venture Partners closes $300 million third fund, eyes AI, consumer & digital infrastructure startups – CNBC TV18, CNBC TV18.

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