Ashish Dave, the former head of Mirae Asset Venture Investments in India, has launched a new venture capital firm named Sanskrit Capital. The Mumbai-based firm is targeting a substantial corpus of ₹700 crore to ₹1,000 crore for its inaugural fund. This new entity will focus on providing growth-stage capital to startups that have already established a strong market presence and are prepared for significant expansion.
Investment Strategy and Focus
Sanskrit Capital will adopt a sector-agnostic approach but will prioritize investments in high-growth areas like fintech, consumer internet, logistics, healthcare, and enterprise AI. The fund aims to back startups at the Series B and Series C stages. This strategy targets companies that have successfully achieved product-market fit and are now focused on scaling their operations and market reach.
The firm plans to write initial cheques ranging from ₹50 crore to ₹150 crore, positioning it as a significant partner for its portfolio companies. A key part of its strategy includes reserving capital for follow-on investments. This allows Sanskrit Capital to double down on its most promising and high-conviction bets as they continue to grow and require further funding.
Operational Structure and Fundraising
The new fund is being established as a single general partner vehicle, with Ashish Dave at the helm. Sanskrit Capital is currently in the process of obtaining the necessary regulatory approvals from the Securities and Exchange Board of India (SEBI). This will officially register it as an Alternative Investment Fund (AIF), permitting it to operate within India's regulatory framework.
For its maiden fund, Sanskrit Capital intends to tap into a domestic pool of capital. The firm is expected to raise funds primarily from Indian family offices, successful entrepreneurs, and prominent startup founders. This approach leverages local networks and capital sources that have a deep understanding of the domestic market and its unique opportunities.
A Growing Trend of Independent Funds
The launch of Sanskrit Capital is part of a broader and significant trend within India's venture capital industry. A growing number of seasoned investors are departing from established firms to launch their own independent funds. This movement reflects a desire to leverage their extensive experience and networks to build new investment platforms with distinct strategies and focus areas.
Recent examples underscore this shift, with former executives from Peak XV Partners launching Mettle Capital and Ambition Capital. Similarly, Sameer Brij Verma, previously of Nexus Venture Partners, established Northpoint Capital Management. These new firms signal a dynamic evolution in the venture landscape, driven by experienced professionals striking out on their own to capture emerging opportunities.
Navigating a Dynamic Startup Ecosystem
This wave of new fund launches is fueled by the rapid expansion of India's startup ecosystem, which now includes over 223,000 recognized startups and 129 unicorns. However, the current fundraising climate presents challenges, as limited partners have become increasingly selective. New fund managers must demonstrate a clear value proposition to attract capital in this competitive environment.
The establishment of Sanskrit Capital marks a notable addition to India's investment landscape, led by a veteran investor with a proven track record. The firm's focus on growth-stage companies addresses a critical funding gap and aligns with the maturation of the country's startup ecosystem. Its success will contribute to the ongoing narrative of experienced fund managers shaping the future of venture capital in India.