Vertex Ventures' SEA & India Arm Raises $541 Million for Fifth Fund, Earmarks $50 Million for Female-Led Startups

By: WE Staff | Tuesday, 12 September 2023

Vertex Ventures Southeast Asia and India has successfully raised an impressive $541 million for its fifth fund. This achievement underscores the growing pool of early-stage VC funds and signifies a strong vote of confidence from both existing and new investors.

The VC firm's existing limited partners (LPs), which include sovereign wealth funds, financial institutions, corporates, and family offices across Asia and Europe, have once again placed their trust in Vertex Ventures. Moreover, the fund has attracted new LPs, including Japan Investment Corporation (JIC), International Finance Corporation (IFC), and DEG (German Development Finance Institution).

Notably, within the fund's corpus, there is a specially designated co-investment fund of $50 million. This allocation is expressly intended to support startups led by female founders, emphasizing Vertex Ventures' commitment to fostering opportunities for women entrepreneurs. Remarkably, over 35 percent of startups in the firm's Fund IV portfolio already boast at least one female founder.

Vertex Ventures initially set its sights on raising $450 million for its fifth fund. However, the achievement exceeded expectations, as the fund's size exceeded its fourth fund, which was raised in 2019 and amounted to approximately $305 million.

Piyush Kharbanda, General Partner of Vertex Ventures Southeast Asia and India, expressed the fund's excitement about the quality of opportunities in the Indian and Southeast Asian markets. He highlighted the palpable macro opportunity and the evolving maturity of the startup ecosystem, which, combined with the caliber of founders, positions Vertex Ventures for success.

Vertex Ventures Southeast Asia and India is no stranger to delivering strong cash returns to its LPs. The fund has previously exited investments in notable companies such as Grab, FirstCry, XpressBees, and Recko, showcasing its ability to add significant value to portfolio companies.

Ben Mathias, Managing Partner of Vertex Ventures Southeast Asia and India, highlighted the fund's track record of superior cash-on-cash returns that have consistently outperformed benchmarks. This track record has encouraged many investors from the previous fund, Fund IV, to return and increase their allocations. It has also led to the expansion of the fund's investor base.

The VC firm is well-poised to continue its investments in various sectors, including enterprise technology, fintech, consumer internet, digital health, sustainability, and mobility. These investments will primarily focus on emerging hubs across Southeast Asia and India, including Singapore, India, Indonesia, Thailand, Vietnam, and Malaysia.

With the fresh infusion of capital, Vertex Ventures Southeast Asia and India aims to further contribute to the growth and development of the startup ecosystem in the region, supporting innovative founders and breakthrough companies.