Huddle Ventures Fund II oversubscribed at Rs 100 crore

Early-stage venture capital firm Huddle Ventures announced on Tuesday that its second fund, amounting to Rs 100 crore, has been oversubscribed. 

The final close of this fund is anticipated within the next four to six weeks. This new fund, initiated in mid-2023, has seen significant interest, prompting the activation of a green shoe option, which could bring the total corpus to Rs 150 crore.

Investment strategies

Huddle Ventures plans to invest in around 20 companies over the next 18 months, with a focus on pre-seed, seed and pre-series A stages. The firm will make investments ranging from Rs 4-8 crore and aims to lead or co-lead all its investments.

"We are sector agnostic and will continue to back startups in fintech, agri, healthcare, consumer brands, and enablers," said Sanil Sachar, General Partner at Huddle Ventures. The firm’s strategy includes follow-on participation up to the Series A round.

Who are the investors?

The fund has attracted commitments from a diverse group of domestic limited partners, including family offices and industry operators.

Ishaan Khosla, General Partner at Huddle Ventures, highlighted the evolving investment landscape, noting, "Family offices are investing up to 10% of their corpus into venture funds now, having learned the lens, the patience, and the capital cycle to double down on investments." This shift indicates a growing confidence in venture capital as a viable investment vehicle.

Huddle Ventures performance

Since its inception in 2017, Huddle Ventures has established a solid track record. The first fund of Rs 50 crore was invested in 25 startups, and the firm has already made six investments from the second fund.

The firm’s portfolio includes health and wellness firm Boldcare, coffee brand Blue Tokai, and oral care firm Perfora. Huddle Ventures has seen three partial exits from its first fund within 36 months, and 65% of the portfolio companies have raised follow-on rounds.

Huddle Ventures aims to leverage its experience in building consumer brands and the wider supply chain, including ecommerce enablers and fintech firms, for its investments.

"We are looking to be the first institutional investor in these companies and will lead or co-lead these rounds," Sachar added.