Incubate Fund Asia’s New Investment in Indian Startups
Incubate Fund Asia, a Japanese venture capital fund known for its support of early-stage startups, is gearing up to invest in approximately 20 early-stage startups in India. The fund has recently closed the initial round of its third fund, with a target corpus of $50 million (about ₹416 crore). This significant capital injection aims to fuel the growth of emerging businesses and sustain innovation in the Asian startup ecosystem.
Fostering Innovation in Indian Startups
Incubate Fund Asia has a history of backing promising Indian startups and has been instrumental in supporting 27 Indian companies, including notable ventures like ShopKirana, a retail merchandise procurement app, and Captain Fresh, a key player in the B2B seafood trading sector. Sumit Ghorawat, co-founder of ShopKirana, acknowledges the valuable support provided by Incubate Fund Asia, emphasizing the fund’s commitment to helping startups navigate both successes and challenges.
The New Investment Fund
The freshly announced third fund of Incubate Fund Asia, with its $50 million target, is poised to have a substantial impact on India’s startup landscape. The fund intends to allocate 40% of this capital to establish a diverse portfolio of approximately 20 startups. The remaining funds will be reserved to provide follow-on funding to the most promising ventures within the portfolio.
A Global Presence and Expanding Horizons
Incubate Fund Asia is not confined to Japan or India alone; it maintains a global presence with offices in strategic locations, including Tokyo, Singapore, Bangalore, Mumbai, São Paulo, and Mountain View. This global network enables the fund to identify and nurture startups with innovative ideas across various sectors.
Rebranding for a Broader Vision
In a strategic move, Incubate Fund’s India-focused entity has undergone a rebranding effort and is now known as Incubate Fund Asia. This name change signifies a deliberate alignment of the organization’s brand identity with its broader vision and extensive reach within the Asian startup ecosystem.
The Vision of Incubate Fund Asia
Nao Murakami, the Founder and General Partner of Incubate Fund Asia, envisions empowering startups and driving innovation across Asia. With the fund’s target closure at $50 million, it is poised to significantly enhance its support for emerging ventures, contributing to sustainable growth and innovation in the region.
Investment Across Diverse Sectors
Incubate Fund Asia’s investment portfolio spans a wide range of sectors, encompassing both B2B and B2C domains. These sectors include supply chain management, consumer technology, and digitization of businesses. The fund operates in both Tier 1 and Tier 2 markets, demonstrating its commitment to fostering entrepreneurship beyond major cities.
A History of Investment Excellence
Incubate Fund Asia’s investments typically range from $500,000 to $1.5 million, positioning it as a valuable partner for startups seeking to scale their operations. In 2019, the fund introduced Fund II, with a total value of $18 million (about ₹149 crore), further solidifying its commitment to the startup ecosystem.
Future Growth and Impact
Incubate Fund Asia’s recent closing of its third fund and its ongoing support for Indian startups highlight the fund’s dedication to fostering innovation and entrepreneurship. As it embarks on this new phase of investment, it is poised to play a pivotal role in shaping the future of the Indian startup ecosystem, fueling growth, and driving innovation across the country.
Incubate Fund Asia’s commitment to Indian startups, coupled with its rebranding and the closing of its third fund, underscores the significant role it continues to play in nurturing entrepreneurship and innovation in India and beyond. As it embarks on this new journey, the fund is set to make a lasting impact on the Asian startup landscape, providing support and resources to drive the success of emerging businesses.
