Iron Pillar Fund, a new global cloud fund plans to invest $8 million to $12 million across eight to 10 companies over a period of 30 months. The fund will focus on global Software-as-a-Service (SaaS) companies with an Annual Recurring Revenue (ARR) of $5 million to $10 million that are building out of India.
The new fund by Iron Pillar will back global cloud software companies from India in the Series B to Series C stages, with a particular focus on automation, dev tools, future work and education as well as cloud security. Iron Pillar recently announced the final close of its $129 million venture growth fund as part of the Iron Pillar Fund II series of funds.
The dedicated growth fund will see participation from institutional funds across the US, Europe, and the Middle East, apart from two endowment funds and a foundation, according to a statement issued by Iron Pillar. Limited partners in the fund include Singapore-based alternative asset manager, 57 Stars LLC.
Iron Pillar Currently Holds $500M AUM
Iron Pillar currently holds nearly $500 million in Assets Under Management (AUM) and has backed companies like seafood retailer FreshToHome, jewellery brand BlueStone, skilling platform Skill-Lync, and cloud kitchen brand CureFoods, among others. Founded in 2016 by Anand Prasanna and Mohanjit Jolly, Iron Pillar raised nearly $300 million as part of its Fund I Series.
The current fund is the first of its Fund II series, with an increase in total corpus through other vehicles. “Other funds are to be raised in coming years but [are in] early days of investor conversations. Hence, we cannot comment on the eventual size and timing right now,” stated Anand Prasanna, Managing Partner at Iron Pillar.
“The global cloud opportunity is growing at an unprecedented pace, and we believe that Indian founders will continue to build some generational businesses in this space. We look forward to actively supporting these founders in their growth stage with this fund,” said Prasanna in a statement.
According to a Bain & Company report, Indian SaaS companies are likely to generate $12 billion in ARR for 2022. Iron Pillar’s new global cloud fund will provide an opportunity for Indian SaaS companies to access the capital they need to grow and scale their businesses.
In a recent interview, Anand Prasanna, Managing Partner at Iron Pillar, said that the firm is looking for companies that are solving big problems in their respective markets. “We’re looking for founders who have a vision and are passionate about what they’re doing. We’re looking for companies that are really solving big problems in their respective markets and have a clear path to profitability and growth.”
Iron Pillar’s new global cloud fund will provide a much-needed boost to Indian SaaS companies that are looking to scale their businesses and compete with global players. With its focus on automation, dev tools, future work and education as well as cloud security, the fund is well positioned to support the growth of innovative companies that are shaping the future of the cloud industry.
Overall, Iron Pillar‘s new global cloud fund is a significant development for the Indian SaaS industry, and it will be interesting to see which companies the firm chooses to back over the coming months and years.