Sixth Sense Ventures, a prominent player in consumer-focused investments, is gearing up to launch its fourth fund with a target corpus of INR 2,500 Cr. Led by founder Nikhil Vora, the Mumbai-based venture capital firm has carved a niche for itself in backing promising consumer-centric startups, boasting an impressive portfolio that includes brands like Bira 91, ProcMart, The Ayurveda Co, and Prozo.
The Fund’s Vision
Scheduled for a July launch, Sixth Sense Ventures’ fourth fund is poised to make a significant impact in the startup ecosystem. With a greenshoe option enabling potential expansion of the corpus, the fund aims to support Series A-stage startups with an average ticket size ranging from INR 40-70 Cr, with provisions for larger investments up to INR 250 Cr. Notably, 50% of the fund will be dedicated to Series A funding rounds, while the remainder will be strategically deployed across various stages of a company’s lifecycle, including growth stage and investments in listed companies.
A Legacy of Success
Founded by Nikhil Vora, a former executive at IDFC, Sixth Sense Ventures has demonstrated prowess in identifying and nurturing high-potential consumer companies since its inception in 2014. With assets under management worth INR 4,500 Cr, the firm’s previous funds have garnered significant traction, with SSIO-III, launched in 2021, deploying over 90% of its corpus into a diverse portfolio of over 30 companies.
Seizing Opportunities in India’s Consumer Market
The decision to launch the fourth fund comes amidst India’s promising trajectory towards becoming the world’s third-largest consumer market, as projected by UBS Securities. With a burgeoning middle class and a surge in disposable income, India presents a fertile ground for consumer-focused investments. The digital revolution further amplifies this potential, offering unprecedented opportunities for startups to thrive in the consumer space.
Industry Trends and Future Prospects
Sixth Sense Ventures’ move to bolster its investment portfolio aligns with the broader trend of funds capitalizing on India’s consumer boom. With other players like Sauce VC also eyeing substantial investments in early-stage consumer brands, the competition in this space is heating up. Additionally, recent developments such as DSG Consumer Partners securing funding from L’Oréal underscore the growing interest and confidence in India’s consumer market among both domestic and international investors.
