India to get a major chunk of QED’s $925 mn fund
2 min read . Updated: 25 May 2023, 12:45 AM IST
PremiumOf the $925 million, around $650 million will be invested in venture deals while the rest will be deployed for growth-stage deals, Patil said.
MUMBAI : Global fintech-focused venture capital firm, QED Investors, plans to invest a substantial part of its new $925 million fund in India and Southeast Asia, a senior company official said.
According to Sandeep Patil, partner and head Asia at QED Investors, India is one of its most important markets outside the US.
“If you look at the big market that India has, and the capacity to absorb lots of amount of capital and return at a commensurate level, India stands out as the big opportunity," he added.
Of the $925 million, around $650 million will be invested in venture deals while the rest will be deployed for growth-stage deals, Patil said.
While the venture vehicle is the firm’s largest till date since it started deploying capital in 2007, tough markets have led to a bit smaller growth fund as compared to the $1050 milion it had raised in 2021, of which $500 million was for growth stage opportunities and $550 for venture investments.
Its portfolio firms include neobank Jupiter, earned wage access provider Refyne, open finance startup Upswing as well as fintech FPL Technologies, which operates credit score portal OneScore.
Being a multi-series investor, the firm will invest in pre-seed, seed, and Series A-B, and growth stage deals for fintech firms with commitments of $1 million and up to $40-50 million.
“Now that tourist investors have gone away, there are a lot of quality companies that will be at the market to raise growth capital. We are seeing opportunity there, and building our pipeline," Patil said.
“APAC is the biggest region for the growth of fintech . This is where the prime of opportunities lie. India has created the right enablers for fintechs. The current kind of infrastructure that has been put in, the kind of regulation that has come in, and the clarity provided, are all very reassuring for international investors," Patil said.
The firm is focusing on full stack fintech companies, such as those offering embedded finance and insurance solutions, to invest in. “We look to deploy $20 million in venture deals itself, and then growth deals can range between $20 million and $50 million. Theoretically, we can go all the way to pre-IPO (initial public offering)," he added.
Founded by Nigel Morris and Frank Rotman in 2007, QED Investors started off as a family office, but later pivoted to a VC model.
Morris previously co-founded Capital One, one of the first fintech firms in the US.