Mauritius-based VC fund DSG Consumer Partners has closed USD 50 million in its third funding round, founder and managing director Deepak Shahdadpuri, told Mint in an interview.
The venture capitalist firm is known for making early bets in consumer internet companies, and has led investments in hotel chain Oyo Rooms, point of sale company MSwipe, retail tea chain company Chai Point, among others. Earlier, DSG has raised USD 50 million and USD 24 million in 2017 and 2012 respectively.
“The strategy will remain identical to Fund II, which was the same for Fund I. When we started in 2013 we developed a hypothesis-led strategy. It has proven to work and we will continue doing what we do well and in the same way. We want to be involved early, at the seed stage and help the founder create the brand narrative—developing the product or service, packaging, pricing, the go-to-market strategy and work closely with the launch," Shahdadpuri said.
The third fund, according to Shahdapuri, will invest in seed and Series A rounds of USD 500,000 to USD 2 million. He said at least 15% of the fund will be dedicated to just one company.
Shahdadpuri said 85-90% of the capital will hopefully come from its existing limited partners (LP, investors in a PE/VC fund) as he expects the rest to come from family offices, Fund of Funds, institutional investors and high networth individuals.
“We are an offshore fund and take only foreign capital. Given the size of the fund, we are giving priority to existing investors almost all of whom continue to support us," Shahdadpuri said.
Other early stage investors such as Kae Capital, Blume Ventures have also recently raised funds. In 2018, Blume Ventures raised USD 40 million for its third fund and said the capital will be deployed in 30-35 companies.
Apart from raising fresh money for its third fund, DSG is raising add-on fund specifically to back the best of the companies from its existing portfolio. DSG will help and invest in Series B and Series C rounds. In 2014 and 2016, it raised USD 10 million and USD 20 million, respectively, as an add-on fund, to back MSwipe and Chai Point among others.