Consumer brands group Unilever and diversified conglomerate ITC have backed the final Rs3.4bn ($52.3m) close of India-based venture capital firm Fireside Ventures’ first fund, VCCircle has reported.
Hero Enterprise Investment Office, a branch of diversified trading firm Hero Enterprise, also involved in the close, which followed an initial Rs1.8bn ($27.9m) secured in June 2017.
The first close included industrial conglomerate RP-Sanjiv Goenka Group and health and skincare product manufacturer Emami as well as family office Sharp Ventures, investment firm PremjiInvest and private equity firm WestBridge Capital.
Fireside Ventures’ fund will invest in 20 to 25 consumer brands over the next two or three years and will primarily focus on domestic companies.
The firm is looking to satisfy changing consumer patterns and cater to values held by younger millennial customers, such as authenticity and ethical sourcing. It expects to discover brands more easily thanks to the digital economy and advances in retail infrastructure.
Fireside Ventures has provided funding for 10 companies including nutrition bar maker Yoga Bar, healthy samosa producer Samosa Singh and grooming product manufacturer Bombay Shaving Company.
The firm was founded by Kanwaljit Singh, a co-founder of VC fund Helion Venture Partners, where he focused on consumer-orientated companies.
Singh said: “The union of digital proliferation and demand for consumer brands is creating new opportunities and business models that will allow multiple new brands to be built in India more efficiently and in faster timeframes.”