Huddle Ventures, an early-stage venture capital (VC) firm, has witnessed robust investor interest in its Fund II, surpassing expectations and prompting an oversubscription by 20% ahead of its anticipated final close.
Strong Investor Response and Funding Goals
Since its launch in mid-2023 with an initial corpus of INR 100 Cr earmarked for investment in 20 startups, Fund II has garnered commitments from various quarters, including family offices, founders, and high-net-worth individuals (HNIs). With the oversubscription, the firm has activated its green shoe option and now aims to conclude the fund at INR 150 Cr within the next four to eight weeks.
Investment Focus and Strategy
The fund, characterized by an average ticket size of $500K extendable up to $1M, including follow-on investments, per company, is poised to support startups across diverse sectors such as consumer brands, fintech, agritech, and healthcare. Huddle Ventures envisions deploying the entire corpus of Fund II by early 2026, bolstering the growth trajectory of promising ventures in the Indian startup ecosystem.
Past Successes and Evolving Investment Approach
Founded in 2017 by Ishaan Khosla and Sanil Sachar, Huddle Ventures boasts a successful track record, particularly evident through its investments via Fund I, which included notable startups like Bold Care, Blue Tokai, Cell Propulsion, RACEnergy, and CureSkin.
The firm’s investment methodology has evolved over time, transitioning from co-investing with smaller cheques to assuming a lead or co-lead investor role in new ventures. This shift underscores Huddle Ventures’ commitment to backing early-stage businesses and nurturing their growth journey.
Continued Support for Early-Stage Ventures
With a focus on backing promising founders and fostering long-term relationships, Huddle Ventures remains steadfast in its mission to support early-stage ventures. Noteworthy investments from Fund II include Greengrahi and Asaya, reflecting the firm’s strategic alignment with innovative startups across various sectors.
Amidst a Challenging Funding Landscape
The oversubscription of Fund II comes amidst a challenging funding landscape for Indian startups, characterized by a funding winter. However, the emergence of new funds like Huddle Ventures’ Fund II, alongside initiatives from firms like 360 ONE Asset and Avendus, underscores the resilience and potential of the Indian startup ecosystem.
Charting the Path Forward
As Huddle Ventures steers Fund II towards its final close and continues to back promising ventures, the firm remains poised to contribute significantly to the growth and evolution of the Indian startup ecosystem. With a commitment to fostering innovation and supporting entrepreneurial endeavors, Huddle Ventures stands as a beacon of support for early-stage ventures navigating the dynamic landscape of entrepreneurship in India.
