Sauce.VC, a New Delhi-based venture capital firm focused on consumer brands, has successfully closed its third fund at Rs 365 crore. This fund surpassed the initial target of Rs 250 crore, marking a significant achievement for the firm.
Fund Oversubscription
The third fund saw an overwhelming response, with demand reaching approximately Rs 700 crore. Founder Manu Chandra expressed his gratitude in a LinkedIn post, noting the fund was oversubscribed three times within four weeks. Despite the high demand, Chandra emphasized the importance of right-sizing the fund to stay true to their long-term strategy and expressed apologies to investors who could not be accommodated.
Prominent Investors
The third fund attracted investments from notable figures, including Infosys co-founder Kris Gopalakrishnan’s family office, Pratithi Investments, Marico promoter Harsh Mariwala’s Sharrp Ventures, Singularity Ventures, and Saison Capital. Impressively, 95% of the capital came from domestic investors, with nearly 80% contributed by existing sponsors from Sauce VC’s previous funds.
Early-Stage Consumer Brands
Sauce VC remains dedicated to investing in early-stage consumer brands and platforms, often at the pre-revenue or idea stage. The firm plans to make 12-15 investments with an average cheque size of Rs 5 crore. Additionally, about 75% of the fund is reserved for follow-on investments, ensuring continued support for promising ventures.
Previous Funds and Performance
Since its inception, Sauce VC has launched multiple funds. In 2019, its first fund raised Rs 60 crore, followed by a second fund in 2021, which secured Rs 158 crore. Furthermore, the firm raised a Rs 263 crore continuity fund to support successful companies from its earlier funds. These funds have backed brands such as Mokobara, The Whole Truth, and Supertails.
Strategy for the Future
Manu Chandra highlighted the firm’s commitment to disciplined capital deployment, ensuring they do not accept more capital than they can manage effectively. This approach aligns with Sauce VC’s long-term vision and strategy, focusing on building a sustainable and impactful venture capital firm.
Sauce.VC’s successful closure of its third fund at Rs 365 crore marks a significant milestone, demonstrating strong investor confidence and a clear strategy for supporting early-stage consumer brands. With a focus on disciplined investment and strategic growth, Sauce.VC is poised to continue its positive impact on the consumer market.
