Seattle, Washington. June 8, 2020 Capria has invested in Arkam Ventures, an early stage technology fund based out of Bangalore, India. As a part of this investment, Arkam Ventures has joined Capria Network, world’s largest network of emerging market fund managers collaborating to deliver superior returns and scaled impact.
Capria’s Second Venture Fund Investment in India
Arkam Ventures is Capria’s second fund investment in India alongside its Unitus Ventures Fund II, another early stage India venture fund, which was completed in late 2019. Capria specialises in investing in private funds and companies in underinvested emerging markets. These funds invest in companies that deliver essential goods and services to local consumers and small businesses leveraging technology and business model innovation in sectors such as financial services, healthcare, ag/food, logistics, and education.
“There is a new opportunity that has emerged for entrepreneurs who deliver essential products and supporting services in the new world post-COVID. These businesses are bound to deliver impact where it matters,” said Dave Richards, Co-Founder and Managing Partner at Capria.
“Arkam’s investment thesis promises sustainable impact along with superior financial returns in markets that are otherwise quite unpredictable.”
Arkam Announces New Fund Commitments Investing in “Middle India”
Arkam Ventures’ new fund has INR 325 Cr (~USD $43 million) in commitments from its investors, a list that includes global institutions — a large US-based institutional anchor investor; Capria, a US-based global fund of funds; SIDBI (Small Industries Development Bank of India); prominent family offices in the US and India; and Unicorn founders such as Binny Bansal (Flipkart), Vijay Shekhar Sharma (PayTM), and Rajesh Magow (Makemytrip) among others. This is a strong start towards Arkam’s target fund size of INR 700 Cr (~USD $92 million).
The COVID pandemic is likely to create long-lasting and in some cases, permanent behavioural shifts for consumers and businesses that disruptive start-ups can exploit. Arkam’s focus areas – financial services, healthcare, food/agri and mobility – account for 70% wallet share of the Middle India, the 400 million people living just below the top of the economic pyramid in India. This population is expected to see large scale adoption of low cost services and solutions from a new generation of digital disruptors.
Arkam is Led by Two Veteran Venture Investors
Arkam is led by partners Rahul Chandra and Bala Srinivasa. Chandra was previously co-founder and Managing Director at Helion Ventures, where he backed startups such as Equitas (IPO), Spandana (IPO), Shubham Housing, MoEngage, RailYatri, UnitedLex (Acquired),LetsBuy (Acquired), Seclore and Toppr. Srinivasa was previously Partner at Kalaari Capital where he backed start-ups across areas such as lending, mobile brokerage, credit scoring, food/grocery and media.
“The Next 400M market is very large, but has huge inefficiencies in the form of broken supply chains, limited access to credit, and outdated brick and mortar infrastructure, all which was magnified during the COVID crisis,” said Bala Srinivasa, Partner at Arkam Ventures.
“Founders who combine a deep understanding of Middle India, and leverage technology to design low cost solutions and efficient new business models can build highly differentiated and scalable businesses. We seek to partner with such founders and help them build best in class businesses.”
Arkam off to a Strong Start with Investments
Arkam Ventures has already made two investments – Krazybee and Jumbotail. Krazybee is one of the fastest growing digital lenders in India. The company is focused on the Next 400M market and has scaled to over 2 million customers, sourced and serviced completely by its mobile app. Jumbotail provides a digital marketplace and supply chain solutions for Kirana stores and has grown to service over 20,000 kirana stores in Bangalore. Arkam is in the process of closing three additional deals in the agri and fintech spaces. For its first fund, Arkam will invest in 15 to 18 companies with a focus on Series A and Series B investments with initial investment sizes in the INR 15 Cr (USD $2 million) to INR 30 Cr (USD $4 million) range.
Capria is a global investment firm leading, partnering with and funding the largest network of emerging market fund managers collaborating to deliver superior returns and scaled impact. Capria brings venture capital innovation and global best practices to local venture capital, private equity and innovative debt funds, managed by local investment experts. Capria’s network of investing partners collectively manage more than USD $400 million in assets deployed in early stage and early growth companies in Latin America, Africa, and Asia. Capria has over $100M in AUM which it invests directly in India via Unitus Ventures, and in other markets via partners of the Capria Fund which takes anchor GP and LP positions. Capria has offices in Seattle, Bangalore and Nairobi. More at: More about Capria Ventures >
About Arkam Ventures
Arkam Ventures is an early stage venture fund focused on partnering with outstanding technology entrepreneurs innovating for Middle India. Our core focus areas are financial services, food/agri, healthcare, and mobility which represent very large markets where disruptive solutions can create scalable business with large scale economic and social impact. We support founders with bold ideas, understanding of Middle India, and the courage to imagine solutions that can transform industries. More about Arkam Ventures >