Dave McClure’s 500 Startups, an early-stage seed fund, has announced a $25 Million regional fund called 500 Kulfi, exclusively for India, Sri Lanka, and Bangladesh.
500 Kulfi will focus on early stage companies with product-market fit and demonstrated traction. Although the fund is sector-agnostic, it’s prime focus would be on FinTech, EdTech, Health & Wellness, Data Analytics, Content and SaaS/SMB.
The India fund, known as 500 Kulfi, will look to make 150 investments, at a pace of roughly between 25 and 50 deals per year.
“It’s a pretty well developed market,” says Fund Manager, Pankaj Jain. The company sees India as a lucrative market given to the country’s spurring startup base.
The company sees India as a highly lucrative market given to its spurring startup base. Further, private equity investment activity in India was up 67% from 2014 to $21 billion. GDP is expected to grow at 7.6% this year, faster than any other large global economy. India has the second largest Internet population in the world after China, more than 300 million users. The number of smartphones in use in India is set to reach over 700 million by 2020. The median age in India is 27.3 years old.
500 Startups has invested in over 50 companies in India since 2011 including amazing startups like ZipDial, SourceEasy, Instamojo, CultureAlley, SilverPush, KartRocket, and Headout. Last year we did over 20 deals in India. However, we don’t think that’s enough. We’re thrilled to announce our plans to do more in India; much, much more.