35North Ventures Launches India Discovery Fund-II, Raises Rs 100 Crore in Initial Phase

Mumbai-based venture capital firm 35North Ventures has announced the successful first phase of fundraising for its newly launched CAT-I alternative investment fund (AIF), India Discovery Fund-II. The fund, which has already secured commitments of Rs 100 crore, aims to support companies with scalable business models and strong growth potential across various sectors, including energy, consumer brands, fintech, and defense.

India Discovery Fund-II is the successor to 35North’s first CAT-I AIF, which had a total corpus of Rs 500 crore, including a Rs 100-crore greenshoe option. The firm's first fund, India Discovery Fund-I, closed its subscription in March 2024, with over Rs 130 crore raised.

Milan Sharma, Founder & Managing Director of 35North Ventures, emphasized that the second fund's investment strategy will mirror the IDF-I approach. "35North has invested in 16 companies across 10 sectors, mostly at the pre-Series A stage. We will be investing in a few more businesses around the same thesis," Sharma stated.

Sunil Gurbaxani, former Managing Director and CEO of Dhan Laxmi Bank and now an operating partner with 35North Venture Capital, will oversee the management of the new fund. According to Gurbaxani, the second fund, which was established in June 2024, will focus on providing growth capital to companies that operate in asset-light, tech-enabled business models. "The average cheque size would be in the range of Rs 5 crore-10 crore, across 30-40 companies, given the large corpus," he explained.

35North Ventures, founded in 2021, has rapidly established itself as a significant player in the venture capital space, with a strong focus on identifying and nurturing companies that exhibit strong potential for growth and scalability. The firm’s commitment to investing in diverse sectors, including emerging areas such as defense and energy, reflects its strategic vision to support the next generation of innovative businesses in India.

With Rs 100 crore already raised from limited partners, including high-net-worth individuals in India and abroad, as well as corporate family offices, India Discovery Fund-II is well on its way to achieving its fundraising targets. The fund aims to build on the success of its predecessor by continuing to invest in promising businesses with the potential to drive significant value creation in the Indian economy.