Filter Capital raises ₹800 crore for debut fund

Filter Capital, an India-based technology-focused investment firm, has achieved a significant milestone with the successful closure of its inaugural fund, Filter Capital India Fund I. The fund boasts a total corpus of ₹800 crore (approximately $97 million).

While 60% of the capital commitment originated from domestic institutional investors and family offices, including HDFC Fund of Funds, SIDBI, SRI Fund, Oister Global, DSP family office, and prominent industry figures like Akash Prakash and Harsh Jain, the remaining 40% was contributed by international investors. Filter Capital aims to deploy its capital across four to six additional companies, and spend about two-thirds of its investments into software services-linked businesses. Their investment approach typically involves leading or co-leading funding rounds in the range of ₹60 crore to ₹100 crore.

Nitin Nayar, co-founder and Managing Director at the six-year-old Filter Capital, shared insights into the firm’s vision. With a focus on leading growth-stage rounds in technology-led businesses, Filter Capital aims to play a pivotal role in nurturing India’s tech ecosystem. “Over the coming decade, technology’s impact on the consumer and business activity in India will be tremendous. Our country has a vibrant start-up ecosystem and an active VC community to support early-stage businesses as well as deep public markets and private equity to support more mature companies. However, there are few investment firms focused on helping today’s breakout technology companies to become tomorrow’s industry leaders. This is the opportunity for Filter Capital. We are privileged to partner with a sophisticated and experienced group of investors who are aligned with our vision to build a leading technology-centric growth investment platform in India,” Nayar said in an official statement.

For those who are unaware, Filter Capital is known to focus on the growth stage, a crucial yet often challenging period for tech companies. They target Series B and C funding rounds, partnering with visionary entrepreneurs leading companies that have reached an inflection point. The firm’s sector focus spans a wide spectrum, encompassing Software as a Service (SaaS), technology services, and others. Notably, Filter Capital maintains an interest in niche areas within the technology landscape, including AI-driven workflow solutions and data engineering.

The close of the inaugural fund is likely to be a boon for the nation’s emerging entrepreneurs, helping them to scale their ventures and drive innovation across various sectors. As mentioned earlier, Indian tech startups often face challenges securing funding during the growth stage (Series B and C rounds). Filter Capital’s focus on precisely this stage fills a crucial gap, providing much-needed resources for companies poised for significant expansion. This access to capital can accelerate product development, market reach, and talent acquisition as well. By supporting companies in SaaS and similar services, the fund can also contribute to the overall digital transformation of Indian businesses.

Even before the final close of the fund, Filter Capital has already begun deploying its capital strategically. Over 30% of the corpus has been invested across several companies within the Indian tech landscape. This includes Capillary Technologies (which provides enterprise loyalty software as a service (SaaS), Chalo Mobility (which focuses on bus mobility, offering a solution for navigating public transportation in Indian cities), THB (which offers solutions that streamline operations and improve efficiency within the healthcare industry), and LoadShare Networks (which provides power management solutions).