Saama Capital, a venture capital firm, has raised around $31 million for its third venture capital fund. With the new fund. the VC firm will be investing between $2 million to $5 million in each company. It is looking at a company which raises close to $2.5 million in Series A with 100-150% reserved for the follow-on rounds.
The firm expects to make a final close by third quarter of 2016. It expects to raise $60-80 million in the ongoing round. Saama has already invested in six companies as part of its third fund including LendingKart, Eazydiner, Veeba Foods, Jifflenow, Raw Pressery and an undisclosed company.
With this fund, Saama’s focus so far has been on software as a service (SaaS) companies and food companies focused on supply chain. It is also watching the financial technology space in the business-to-consumer segment.
Saama has made largest investments in two lending companies – Vistaar Finance and LendingKart, respectively. It had previously raised $54 million for its first fund and then $26 million for the second fund. It exited Snapdeal last year apart from selling stakes in TutorVista, Sula Vineyards, App Labs and Prizm Payment Services.
Apart from Saama, other VC firms are also raising funds to make investments in Indian startups. Sequoia Capital recently closed its $920-million fund and Accel India is also planning to raise a new fund that will be larger than its previous $305-million corpus. IDG Ventures India has received commitments of $150 million from investors for its third fund, and is targeting $200 million.
Just yesterday, Singapore-based PE-style investment firm, Nalanda Capital also announced that it is about to raise $620 million for its new fund. This will take the total corpus raised by the firm to $1.5 billion.