The $25 million second fund from Chennai-based BoldCap will only invest in early-stage software-as-a-service (SaaS) businesses. Over the following 24 to 36 months, it intends to invest in 15-20 businesses.
In the upcoming 24-36 months, the venture capital firm plans to invest in 15-20 businesses, according to a release. It has so far made investments or promised investments in four firms, including the pricing infrastructure tool for SaaS companies Togai and the notification infrastructure tool SuprSend.
The second fund is supported by a fund of funds, a modest organization, four to five family offices, as well as international founders and early employees from other firms. BoldCap’s founder and general partner, Sathya Nellore Sampat, remarked.
Sampat predicted that there may be a “high possibility” of the creation of an opportunity fund in the upcoming 12 to 16 months to invest in some of its breakout portfolio firms based on the early signs of traction in the companies it has previously invested in.
Under its initial fund, which was formed in 2021, BoldCap made an investment of around $5 million. Spend management software Spendflo, design to code converter Locofy, test automation platform TestSigma, and contract management and automation software Spotdraft are among the ten firms in its portfolio.
Business-to-business (B2B) SaaS startups in the pre-seed and seed phases are a key bet for BoldCap. It intends to use the money it has available in order to keep ownership by taking part in investment rounds after the Series A round. Beyond that, it would be the responsibility of a prospective opportunity fund.
Given that India’s total addressable market is lower than that of nations like the United States, the venture capital company is clear that these should be developed in India for the globe rather than only for the Indian market.
Sampat emphasizes giving SaaS startups moving from 0 to 1 solid go-to-market support. The primary subsets that BoldCap is interested in include vertical SaaS, developer tools, business apps with generative artificial intelligence capabilities, and cybersecurity.
With the success of firms like Zoho and Freshworks and the growing of several businesses in various categories with the potential to be billion-dollar companies in the upcoming years, experts and investors claim that the Indian SaaS market has matured.
According to a report released in July of last year by American VC and private equity firm Bessemer Venture Partners, nearly $5 billion in venture capital was invested in the Indian SaaS market in 2021, and the market size for this industry is predicted to increase five times, from $10 billion in 2020 to $50 billion in 2030. Sampat has two prior business ventures before switching to investing.