8i Ventures has raised $50 million for its Fund II. 8i is a Mumbai & Bangalore based early stage fund that backs founders creating fintech and consumer category leaders in India.
So far its partners have backed 28 seed to early stage startups over the last decade that have created more than a billion dollars of value for their shareholders. These include several category leaders like Carwale.com, HCG Global (NSE: HCG), EzeTap, Blue Tokai, MoneyTap, Online Tyari, Eatigo, Signzy, amongst others.
Armed with the new fund II 8i Ventures plans to invest in fintech startups as they believe the sector offers is a billion-dollar startup opportunity.
“This fund’s funds will be used to invest in fintech companies that make money easier to manage. Obtaining a credit card was a difficult task for everyone. Slice, on the other hand, delivers it in a matter of minutes. That is what we consider before investing in companies “According to Vikram Chachra, Founding Partner of 8i Ventures.
In 2020, the early-stage investment firm will raise its first fund of $13 million. This fund was used to invest in startups such as omni-channel coffee seller Blue Tokai, fintech product builder M2P, and Slice, the most recent unicorn entrant. Only three days ago, the Bengaluru-based firm raised $220 million led by Tiger Global at a $1 billion valuation.
Vikram claims to have grown his investment in Slice by 96X using his personal wealth. Slice was inducted into the unicorn club three days ago, thanks to a $220 million investment led by Tiger Global.
With the new fund, 8i Ventures aims to cut bigger cheques to seed and early-stage startups. “We now have the firepower to lead seed and A deals and support our companies till they break out and attract late-stage VCs,” says Vikram, who holds an MBA from New York University’s Stern School.
8i Ventures will invest between $500,000 and $5 million in early-stage startups
Founded in 2018, 8i Ventures will invest between $500,000 and $5 million in early-stage startups for an exchange of 10-20 percent equity.
Vikram decided to majorly invest in fintech firms after seeing their appeal in American and Latin-American countries. On a trip to Brazil, he met the founder of a neobank firm.
“I could see the similarities between LatAm (Latin America) and the Indian market,” Vikram says. He uses these parallels to pick on early financial trends that could play out in India.
The fintech ecosystem also got a major boost due to the pandemic when people started leveraging UPI (Unified Payment Interface) as their go-to payment method, while using other digital financial services.
