Cedar Capital, a collaboration between Cedar Consulting and fintech market intelligence platform IBS Intelligence, declared the first close of its Rs 240 crore ($30 million) Fintech Venture Capital fund. The fund has secured capital within the Rs 50 to 75 crore range.
With an initial cheque size ranging from Rs 4 to 10 crore, the fund aims to invest in approximately 15 early-stage startups. Its primary focus will be banking technology and business-to-business (B2B) fintech startups.
The statement mentioned that leading family offices and institutional investors from India and the Middle East are among the limited partners involved in this round.
This development occurs as India’s banking and fintech landscape undergoes heightened scrutiny and regulatory modifications from the Reserve Bank of India. These adjustments include raising the risk weight on consumer credit for both banks and non-banking financial companies (NBFCs) and increased oversight of credit card operations.
“The fund will focus heavily on backing seasoned entrepreneurs who are building solutions and technology in the area of BankTech; Enterprise fintechs that are solving for use cases and problems within banks, insurance companies, NBFCs, and other financial services players,” the company said in a statement.
In March 2023, Cedar Capital unveiled its fintech-focused venture capital fund’s launch, focusing on regions like India, the Gulf Cooperation Council (GCC), and other markets. It brought on board Subit Saurav from the impact investment firm Aavishkar Capital to co-lead investments alongside founder Sahil Anand. Additionally, Sunny Desa from YES Bank was appointed to manage investor relations and fintech investments.
The advisory board of Cedar Capital boasts industry veterans such as Sanjiv Anand, chairman of Cedar Group, Pradip Shah, founder of CRISIL and HDFC, Bobby Parikh, cofounder of BMR Advisors, and Felipe Martinez, chief investment officer of Revolut, among others.
