Inflexor Ventures has announced the official launch of the first close for its 3rd fund. The 3rd fund is designated as the Inflexor Technology Discovery Fund. The firm managed to target commitments of ₹400 crore against a larger target corpus of ₹1,250 crore for this initial milestone. The launch of Fund III marks a significant fundraising achievement for the VC firm and continues its track record of providing capital to new technology startups.

Investment strategy and historical track record

A critical asset of the fund is the significant institutional support that enables the fund to realize its target. Fund III anchor investors include SRI Fund, HDFC Asset Management Company, and HDFC AMC Select AIF FoF. In addition to these domestic anchor entities, Fund III also attracted international institutional investors, who have invested in the fund to raise the ₹400 crore first close.

During the pre-Series A and Series A phases, Inflexor Technology Discovery Fund will focus on science, engineering and technology start-ups. The venture capital firm plans to invest between ₹15 crore and ₹45 crore in each portfolio entity in its initial investments. Inflexor Ventures plans to create a portfolio of 22 to 25 businesses through these investments. 

Details provided by Inflexor Ventures also indicated that the newly formed fund will have a greater focus on Series A investments than its previous fundings. With its emphasis on Series A deals, the fund will remain sector-agnostic, seeking technology-related businesses with high barriers to entry. Capital deployment in Fund III is already underway and expects to announce its first cohort of investments over the next couple of weeks.

Venkat Vallabhaneni, Jatin Desai and Pratip Mazumdar founded Inflexor Ventures. They have taken the venture firm across the Indian startup ecosystem, managing about ₹1,300 crore in assets under management (AUM) under their leadership. 

Throughout its history, Inflexor Ventures has backed over 25 startups in a wide range of technologies. The firm’s prominent portfolio companies include consumer electronics brand Atomberg, space technology firm Bellatrix Aerospace, cybersecurity platform CloudSEK, cash flow management tool CredFlow, logistics software company Kale Logistics, and early-learning technology company PlayShifu.

The founder and managing director of Inflexor Ventures, Venkat Vallabhaneni, said, “India’s innovation ecosystem has reached an inflection point. We’re seeing a growing pipeline of globally ambitious companies built on differentiated science, engineering and technology, creating a compelling opportunity to partner with founders earlier in their scaling journey. Fund III reflects our conviction in this opportunity and our commitment to being long-term partners to exceptional founders.”

Quotation Source: BW DISRUPT 

Conclusion

The successful first close for Fund III at a commitment volume of ₹400 crore is a positive milestone for Inflexor Ventures on its journey of building a target corpus of ₹1,250 crore. The firm is supported by foreign and institutional investors as well as key domestic institutional investors, including the Self-Reliant India Fund and the HDFC Asset Management Company, and is set to invest ₹15 crore to ₹45 crore in 22 to 25 technology-powered startups.

As capital investment is progressing and initial investments are expected, Inflexor continues to build assets under management beyond the current ₹1,300 crore size. This makes it an ideal fit for science, engineering, and high-barrier technology enterprises at pre-Series A and Series A stages.