(MENAFN- KNN India)
New Delhi, Aug 14 (KNN) In a significant development for the Asian startup ecosystem, Incubate Fund Asia, a Japan-origin venture capital firm, has successfully closed its third fund with a corpus of USD 30 million.
The announcement, made by founder and general partner Nao Murakami in an exclusive interview with The Times of India, signals a robust commitment to early-stage investments, primarily in India's burgeoning B2B and B2C sectors.
The Singapore-based fund, previously known as Incubate Fund India, has already begun deploying capital from this new fund. To date, it has backed four promising startups: Includ (kids fashion wear), Green Fortune (vertical garden developer), Saswat Finance (rural-focused lender), and Fantail (B2B textile marketplace).
Murakami revealed ambitious plans for the fund, stating, "We plan to make 20 early-stage investments and also provide follow-on funding to our portfolio companies." The firm's strategy involves leading funding rounds with investments ranging from USD 500,000 to USD 1.5 million.
Despite the current fund's focus, Incubate Fund Asia is already setting its sights on the future. Murakami indicated plans to raise a larger fourth fund within the next 18 months, demonstrating confidence in the region's startup potential.
To support this growth, the firm is actively seeking to expand its team, particularly by hiring senior investors with expertise in niche areas such as deeptech.
The fund's rebranding in September 2023 from Incubate Fund India to Incubate Fund Asia reflects its expanded focus beyond India to include pre-seed and seed-stage startups across Southeast Asia. However, Murakami emphasized that 80 per cent of the fund's investments will still be directed towards Indian startups.
Incubate Fund Asia's track record is impressive, with 27 companies backed through its first two funds since 2016. Notable investments include Captain Fresh, Yulu, ShopKirana, and Plum. The firm has already achieved six exits from these earlier funds, yielding internal rates of return between 35 per cent and 60 per cent.
The latest fund has attracted a diverse group of limited partners, including family offices from South Korea and Singapore, as well as the parent Incubate Fund group based in Tokyo. This parent group, which operates independently in various countries including Brazil and the United States, boasts a portfolio of over 200 startups in Japan alone.
As Incubate Fund Asia continues to strengthen its position in the Asian venture capital landscape, its focus on early-stage investments and strategic expansion plans suggest a bright future for both the fund and the startups it supports. With this latest closure, the firm is well-positioned to play a pivotal role in shaping the next generation of innovative companies across the region.
(KNN Bureau)
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