After initiating fundraising efforts in 2021, Filter Capital recently announced the successful closure of its maiden CAT II AIF growth-stage fund, Filter Capital India Fund I, at INR 800 Cr (approximately $100 Mn).
Diverse Investor Base
The fund attracted investments from a diverse pool of investors, with 60% originating from domestic sources and the remaining 40% from international backers. Filter Capital’s investment strategy focuses on leading/co-leading Series B and C rounds, targeting 8-10 companies with an average ticket size ranging from INR 60-100 Cr ($7.2 Mn -$12 Mn). The firm prioritizes investments in IT services, SaaS, and technology-driven businesses across consumer, financial, and business services sectors.
Investor Commitments
Notable investors in Filter Capital’s maiden fund include leading Indian institutional investors and family offices such as HDFC Fund of Funds, SIDBI, SRI Fund, Oister Global, DSP family office, and prominent figures like Akash Prakash, founder of Amansa Capital, and Harsh Jain, CEO of Dream11.
Filter Capital’s Investment Approach and Leadership
The founders of Filter Capital, Nitin Nayar and Sumit Sinha, bring decades of collective experience in the Indian venture capital landscape. Nayar’s tenure at Warburg Pincus spanned over 14 years, while Sinha held positions at renowned VC and PE firms such as Temasek Holdings, Warburg Pincus, and Multiples Alternate Asset Management.
Nayar and Sinha’s collaboration originated during their tenure at Warburg Pincus, where they worked on numerous tech investments, including notable deals in companies like CarTrade, Quikr, and Capillary Technologies.
Investment Philosophy
Filter Capital focuses on Series B/C stage startups, considering them to offer the optimal balance of traction and growth potential. The firm’s experience in growth-stage investing enables it to identify promising opportunities in the tech and tech-led sectors. With a concentrated portfolio of 8-10 startups, Filter Capital emphasizes maintaining a healthy risk-reward balance in its investment decisions. The firm seeks investments that offer potential for significant returns while mitigating downside risks. Filter Capital adopts a disciplined approach to valuation, ensuring that investment decisions are based on thorough analysis and alignment with the firm’s risk appetite and return expectations.
Filter Capital’s successful closure of its maiden fund underscores its prominence in the Indian growth-stage investment landscape. With a seasoned leadership team, a focused investment strategy, and strong investor backing, the firm is poised to make significant contributions to India’s tech ecosystem. As it continues to identify and nurture high-potential startups, Filter Capital remains committed to delivering value to its investors while driving innovation and growth in the Indian startup ecosystem.
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