The fund will make 25-30 investments in firms that fit its premise of digital-first consumer brands. It will concentrate on health and wellness, education, lifestyle, and FMCG
Early-stage consumer-focused venture capital fund Fireside Ventures announces the final close of its third fund at $225 million (Rs 1,830 crore).
The fund will make 25-30 investments in firms that fit its premise of digital-first consumer brands. It will concentrate on health and wellness, education, lifestyle, and FMCG (fast-moving consumer goods).
Fund III will search out brands with a strong purpose, good practises, and healthy governance, in addition to products that deliver individualised customer experiences using data analytics-based value propositions, the firm said in a statement.
Self-Reliant India Fund, Investment Corporation of Dubai, SBI, Premji Invest, Waterfield-Fund of Funds, ITC, Emami, Sharrp Ventures, and startup founders are among the new and existing Indian and foreign investors in the third fund.
The firm said that 50 per cent of the investments will be for the firm which have founded or co-founded by women. The fund has been the first institutional investor in 75 per cent of its 31 portfolio companies, one of which is a unicorn, and another is IPO-bound.
According to the business, the total value of portfolio companies across three funds is $3 billion.
Company further stated that the market for direct-to-consumer brands is expected to reach $100 billion by 2025. The pandemic, ecommerce penetration, and emphasis on health and wellbeing will hasten development. It anticipates that newcomers will compete with legacy brands in important categories such as cosmetics and personal care, food and beverages, and fashion.
“At the stage at which we invest (which is seed, Series A), we have not seen too much froth/volatility in valuations and they continue to be in a range, we see the valuations persisting at similar levels,” said Kanwaljit Singh, Managing Partner, Fireside Ventures.
Fireside Funds I and II have made investments in companies such as personal care unicorn Mamaearth and IPO-bound boAt, as well as fast-growing businesses that have become household names such as Slurrp Farm, Kapiva, 91 Cycles, Design Café, FS Life (formerly FableStreet), The Sleep Company, Gynoveda, Wellbeing Nutrition, and Pilgrim. Over the years, Fireside has made investments in a variety of areas, including personal care, processed foods, lifestyle, and home products.
In March 2018, the venture capital firm closed its first fund for $52 million.