IAN’s Alpha Fund Reports Impressive First Close at INR 355 Crores

IAN Alpha Fund, a Venture Capital fund with a corpus of Rs 1000 crores (US$119mn) announced its first close at Rs. 355 crores. This is the second VC fund in IAN Group’s series of Funds and the first close is a little higher than the target corpus of IAN Fund I. Marquee investors of the IAN Alpha Fund include SIDBI (Small Industries Development Bank of India), SRI Fund, and several investors from IAN Fund I.

Saurabh Srivastava, Co-Founder, Indian Angel Network said, “Startups are the key engines for employment and economic growth in India, finding solutions for many of our complex contemporary challenges by leveraging technology and innovative business models.  The Alpha Fund will be instrumental in achieving our vision of investing in over 500 startups and creating 5,000,000 jobs by 2030, nurturing a thriving ecosystem, and driving substantial economic growth while shaping a brighter future for the entrepreneurial landscape in India.

Registered with SEBI under AIF Category II, the Alpha Fund is strategically positioned to catalyze innovation across diverse sectors, such as clean tech, health tech/bio, fintech, deep tech, spacetech, consumer, agri-tech, cybersecurity, hardware, robotics, and more led by passionate & high quality founders. This versatility is aligned with IAN’s commitment to staying at the forefront of emerging trends and technologies in the startup ecosystem.

Raman Roy, Co-Founder, Indian Angel Network expressed his enthusiasm, saying, “The first close is a significant milestone for the Alpha Fund and will empower us to embark on our mission of supporting early-stage startups with the potential to reshape industries and create enduring value. We are thrilled to announce that esteemed investors such as SIDBI (Small Industries Development Bank of India) and SRI (Self Reliant India) have shown confidence in our vision by participating in this funding round, further solidifying our commitment to driving transformative change in the startup landscape.”

The IAN Alpa Fund will further the IAN Group’s mission to invest “5000 crores in 500 startups to create 500,000 jobs and bring Indian innovation to global markets. The IAN Group has an impressive lineage, investing over Rs 900 Cr in over 250 startups, which are currently valued at over US $ 9 bill (Rs 75,000 Cr). The Alpha Fund leverages the success of the IAN Angel Platform and IAN Fund I, with the latter’s portfolio performing exceptionally well and monies being returned to investors. 74% of the capital was invested in companies which have raised more than 12 times the initial amount, showcasing the Fund’s ability to identify and nurture high-quality companies. The Alpha Fund is set to perpetuate IAN’s legacy of strategic investment, targeting startups that not only solve real-world problems but also drive inclusive growth through technological innovation and scalable business models which transform the market landscape.

Padmaja Ruparel, IAN Co founder and Senior Managing Partner of the IAN Alpha Fund said “We intend to not only focus on India’s metros to harness, but also have a keen eye on tier 2 and 3 cities, where untapped potential and creativity abound and where we have already had some great successes. Female founders will also be an area of focus”.

Ajai Chowdhry, Board Member at IAN, said, “The Alpha Fund will explore opportunities in diverse sectors such as fintech, healthtech, renewable energy, deep tech, agritech, medtech, hardware and electronics, manufacturing, Web 3.0, Metaverse, Industry 4.0, SaaS, D2C, and other innovative domains. Our expansive investment approach underscores IAN Alpha Fund’s dedication to fostering innovation and supporting visionary entrepreneurs across various sectors, thereby enriching the dynamic and ever-evolving startup ecosystem.”

Priyank Garg and Sarika Saxena recently joined IAN Alpha Fund as Managing Partners, complementing the leadership of Padmaja Ruparel. Their diverse experience and expertise will complement the Managing Partners’ group, which also includes Rajnish Kapoor who continues from Fund 1 and enhance the Fund’s capability to identify and nurture best of the next innovation and entrepreneurs across a wide range of sectors.

IAN Alpha Fund
IAN Alpha Fund, a Rs. 1000 crores (US$125mn) SEBI registered AIF Category II VC Fund, is the second Fund in IAN’s series of Funds. The Fund will explore opportunities in diverse sectors such as fintech, healthtech, renewable energy, deep tech, agritech, medtech, hardware and electronics, manufacturing, Web 3.0, Metaverse, Industry 4.0, SaaS, D2C, and other domains where innovation abounds. The Fund  will invest in innovative startups solving real problems for India and the world, with sustainable business models enabling scale by leveraging technology. With the IAN Alpha Fund, IAN continues its legacy of building a portfolio of high-quality companies by founders who not only understand the customer need but have leadership qualities to build a high quality management to build valuable businesses.

 About IAN
IAN Group is the country’s single largest platform for seed and early stage investment platform with IAN Angel Group, BioAngels and IAN Fund I, the first in the series of VC Fund enabling entrepreneurs to raise from Rs. 50 lakhs to Rs. 50 crores from quality investors who provide funds, mentoring and global market access. The platform brings money, mentoring from successful entrepreneurs and dynamic CEOs. The platform is sector-agnostic and has funded innovative start-ups across 19 sectors in India and 7 other countries, thereby growing the global footprint of companies. IAN has been listed by Forbes as one of iconic business and economic events of Independent India, over 75 years along with LIC, NASSCOM, RBI, Naukri.com amongst others.

Media coverage

• https://www.financialexpress.com/business/sme/ians-rs-1000-crore-alpha-fund-makes-first-close-of-rs-355-crore/3327427/
• https://www.cnbctv18.com/startup/startup-digest-ian-alpha-fund-first-close-rs-355-crore-spotify-cut-1500-jobs-allen-nvidia-18488461.htm
• https://bwdisrupt.businessworld.in/article/IAN-s-Alpha-Fund-Announces-First-Close-At-Rs355cr/04-12-2023-500998/
• https://economictimes.indiatimes.com/tech/funding/indian-angel-networks-alpha-fund-announces-first-close-at-rs-355-crore/articleshow/105733626.cms
• https://blinks.bloomberg.com/news/stories/S54K08DWRGG0
• https://www.etnownews.com/videos/shows/alpha-fund-which-sectors-will-the-fund-bet-on-startup-central-video-105767402/amp