Nexus India Capital closes $220 million fund

Mumbai-based Nexus India Capital said it has closed a second early stage fund of $220 million to invest startups in clean technology, as well as consumer, business services and media sectors.

The fund is to be put to work an estimated 20 to 25 companies over the next three years. The average investment target for each company is $8 million to $10 million, Nexus India Capital said.

Nexus India says it plans to invest in six to eight companies, each with an expected investment time frame of 10 years. It expects to put the funds into action over the course of the next four to five weeks.

Nexus' early stage focus contrasts its approach from Helion Venture Partners and Matrix Partners India, both of which have raised larger funds targeted at growth deals.

Nexus said it has already committed seed investment of a few hundred thousand dollars into five stealth startups.

The fund is to be managed by its team of three members and the venture fund said it is looking to add partners.

Cleantech venture capital investment is growing in excess of what some have called the traditional “Hindu rate of growth” of 2 percent to 3 percent per year to the current 8 percent to 9 percent, according to investors (see Think different about cleantech in India and China, say experts.)

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