Silicon Valley-based AngelList has announced the launch of an India-dedicated fund called The Collective. The fund will back syndicate leads to invest in Indian startups.
AngelList is an online platform that allows entrepreneurs to raise money from a list of accredited investors. It launched its India chapter around 2017 and hired angel investor Utsav Somani to take care of the operations.
The Collective’s sponsors include Flipkart co-founder Binny Bansal, Avnish Bajaj from Matrix Partners, Rahul Mehta from DST Global, Salil Deshpande of Bain Capital Ventures, and Tarun Davda, Vikram Vaidyanathan and Navroz Udwadia of Falcon Edge Capital. Other fund houses such as Beenext, Kalaari Capital and FJ Labs are its LPs.
Utsav Somani, partner at AngelList India, said, “I feel that capital from limited partners is a matter of getting consistent access to the smartest founders, hottest deals and early signs of strong company-market fit. This excited our investors to support us in this first edition with their cheques. We are obliged to deliver and will continue to scale AngelList India towards being the platform of choice for the investors and founders alike,” he said.
Utsav Somani, Pankaj Jain, former partner at 500 Startups India, and Nipun Mehra, who has worked with Sequoia Capital, Flipkart and Pine Labs, would be on The Collective’s investment committee.
Somani said that the Collective will selectively deploy its corpus behind the syndicate leads that use AngelList India’s infrastructure to power their angel investments. “Typically, syndicate leads have demonstrated access to hot rounds and are looking to leverage their access to have a chance to earn carried interest. Carried interest in venture world is the reward for delivering a successful return to the backers,” he said.
Although Somani did not disclose the fund size of The Collective, he said within 12-18 months it will invest in 60-80 companies. “It’s ready to start investing immediately.”
Among its syndicate leads in India, AngelList has Kunal Shah, founder of Cred and Freecharge, Jitendra Gupta, MD at PayU and founder of Citrus Pay, Girish Mathrubootham, founder of Freshworks, Ash Lilani, partner at Sama Capital, and others.
Since the launch of AngelList India in 2018, 15 syndicate leads have invested over USD 5 million in 50 Indian startups, such as Elemential, BharatPe, Yulu, Open, Nymble, HalaPlay, Jai Kisan and LeanAgri.