Z3Partners $75Mn Fund to invest in 10 early growth, digital and tech startups

Venture capital firm Z3Partners, which claims to be India Market Leader in Tech & Digital Investing announced on Tuesday that it has closed its fund at Rs 550 crore ($75 million) to invest in early-growth, digital and tech startups.

The fund will focus on SaaS, fintech, ecommerce, B2B commerce, agritech, big data, consumer tech, and all things tech-enabled, with a ticket size of Rs 50-80 crore ($6-10 million) per investment.

“Our vision is to identify the most disruptive startups and provide them with support to grow into market leaders,” said Gautam Patel, Founder and Managing Partner of Z3Partners. “The same philosophy is reflected across our LP base too, with market leaders like HDFC Life and SIDBI as fund investors.”

Z3Partners to Invest in Rs. 50 to Rs. 60 Cr in startups

Z3Partners has already made five investments, including cybersecurity startup Cyfirma, social ecommerce firm DealShare, agritech platform Gramophone, SaaS-based logistics management leader Shipsy, and AI-led celebrity engagement platform TrueFan. DealShare, in particular, turned unicorn in 2022 after its $165 million Series E financing round.

Rishi Maheshwari, Co-founder and Managing Partner of Z3Partners, said India continues to be an attractive investment destination. “Coupled with the government’s focus on driving growth through digital transformation, it is a unique and exciting time for venture investing,” he said. “I am excited and look forward to working with Gautam in building Z3Partners into a world-class digital investment platform that backs the next generation of entrepreneurs.”

The company backs early trends, and identifies teams and businesses that represent quality-at-scale and good governance, resulting in rewarding its investors with consistent and noteworthy investment returns.

Z3Partners‘ fund will invest in eight to 10 early-growth, digital, and tech startups with a ticket size of Rs. 50–80 crore.

Earlier in July 2022, One of the top private life insurers, HDFC Life had invested in Z3Partners Tech Fund to focus on tech and digital investments from its target capital pegged at Rs 500 crore. The investment details by HDFC Life remain undisclosed.

“The objective is to invest in and nurture the highest quality tech and digital entrepreneurs in India. Z3 Partners, which is currently raising this fund of Rs 500 crore, has already backed best quality startups like Cyfirma, DealShare, Gramophone, Shipsy, and True-Fan,” Z3Partners said.

Mumbai-based Z3Partners is founded by Gautam Patel whose prior investments through Zodius Technology Fund have been Bigbasket, MedGenome, OfBusiness, Pepperfry, and others.

Patel has previously co-founded early-stage technology investment firm Zodius Capital, which was acquired by Mumbai based financial services firm Avendus Capital in 2017. Prior to Zodius, Patel spent several years at Battery Ventures.

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