Fractal Growth Partners eyes $250 mn fund to invest in Indian tech startups

"It's targeting investments of $10 million to $15 million per target company and plans to close the investments in about five years"

A pair of former fund managers from KKR & Co. and British International Investment Plc aim to raise as much as $250 million to invest in technology-focused startups in India, according to people familiar with the matter.

The new venture capital fund, Fractal Growth Partners, was co-founded by Ajay Candade, who until recently led KKR’s growth tech business in India, and Nikhil Balaraman, who was previously head of South Asia tech investment at BII. FGP will look to scale up companies that have moved past the seed funding phase, one of the people said, asking not to be identified as the information is not public. The firm will also invest in software as a service and business to business companies, the person said.

India has one of the world’s fastest-growing tech industries, with startup hub Bengaluru drawing venture capital investment at a faster pace than London or San Francisco, by one estimate. Warburg Pincus Chief Executive Officer Chip Kaye described India in November as the most optimistic place for investments today, citing areas such as digital consumables and e-pharmacy.

FGP is in the process of raising between $200 million and $250 million and has already attracted some domestic and overseas investors, according to one of the people.

Photo: Bloomberg

, the person said.

A representative for FGP declined to comment on a query from Bloomberg News.

Candade was involved in KKR’s acquisition of stakes in financial services firm Avendus Capital Ltd. and educational services provider EuroKids International Pvt. Ltd. Balaraman led BII’s investment in Bigbasket, India’s largest online grocer.