The brand new automobile — Alpha Wave Incubation — is within the ultimate levels of closing the corpus and expects to make 30 offers in 12-15 months, mentioned these sources. The fund is being backed by restricted companions (LPs) from the UAE and also will spend money on Southeast Asia in addition to India, the place Falcon Edge has backed firms like bike-sharing startup Bounce in addition to software program corporations Mad Road Den and Locus within the earlier yr. Typical investments from the brand new fund, which may even have a devoted staff, will vary from $50,000 to $5 million.
“The major areas of interest for the fund will be e-commerce, fintech, software-as-a-service (SaaS) and business-to-business (B2B) startups,” mentioned one of many sources talked about earlier. “It will be one of the largest pools of capital for early stage.” The portfolio firms from the brand new fund may even must arrange a presence within the UAE, although the precise particulars of this association are nonetheless being labored out, they mentioned.
Whereas the main focus of this fund is totally on early-stage firms, Falcon will proceed to additionally investments in late-stage firms by totally different swimming pools of capital. The agency — which has over $Three billion in property throughout private and non-private markets — lately completed committing India Disruption Companions a $100 million, mentioned considered one of these sources.
TOI had reported final yr that Falcon Edge has already deployed $500 million in India with plans to take its whole guess on the nation to $2 billion within the coming years. Mint had reported final week that Falcon Edge is elevating a $250-million India fund.Whereas Falcon Edge has been lively in India’s digital area since 2014, it’s funding technique has been evolving — going extra early-stage and in addition betting on areas like AI and startups fixing environmental points, makes its technique distinctive amongst corporations working in India. In addition to giant startups like Dailyhunt and Ola, the agency can also be an lively investor in bigger firms like Nationwide Inventory Change (NSE) and non-banking finance unit of JM Monetary. The India push on the agency is led by co-founder Navroz D Udwadia, a Harvard MBA and a Rhodes Scholar, who has been investing in India for over a decade, beginning with hedge fund Eton Park Capital.
Falcon Edge’s new fund comes at a time when a number of different giant new funds are additionally within the works, indicating that regardless of sobering sentiment round valuation total capital stream in startups is just not anticipated to dramatically decelerate. TOI reported on January 24 that Sequoia is elevating $1.25 billion for 2 new funds for India. Tiger World Administration, which was some of the lively buyers in India in 2019, additionally closed a brand new $3.75-billion world fund.