IDFC Alternatives sets up fund for startups

MUMBAI: IDFC Alternatives has set sights on startup space as part of its growth strategy. The infrastructure-focused company has entered the early stage investing space through its strategic investment into IDFC Parampara Early Stage Opportunities Fund.

VC firm Parampara Capital is the investment manager to the fund. The fund seeks to make Series A participative investments in companies across sectors — excluding ecommerce — where technology, intellectual property and innovation are primary differentiators.

“In line with the government’s Startup India initiative, aimed at strengthening the ecosystem for nurturing innovation and startups, we have now added early stage investing as the fourth asset class through this strategic partnership with Parampara. IDFC Alternatives will have a strategic commitment to the fund, including participation in the fund’s investment committee and advisory board,” MK Sinha, Managing Partner, IDFC Alternatives, told ET.

Apart from IDFC Alternatives, the anchor investor in this startup platform, SIDBI, has also invested in this fund, which has an initial corpus of .`85 crore. The fund is in advanced discussions with few large domestic institutions for investing in the same. “This is just our first fund for startups...Under this series A platform, we will be investing in startups at prototype stage on technology front,” Sinha said.