B Capital marks final close of third fund at $2.1 billion

B Capital marks final close of third fund at $2.1 billion

From left to right: Raj Ganguly and Edward Saverin

US venture capital firm B Capital Group, which has backed Indian startups such as Byju’s, Meesho and BlackBuck, said on Thursday it marked the final closing of its third fund and a complementary fund at $2.1 billion.

Proceeds will be used primarily to target growth investments in the corporate, fintech and healthcare sectors globally, with a particular focus on the US and Asia.

B Capital was founded by Raj Ganguly and Eduardo Saverin in 2014. In 2020, the company closed its second fund at $820 million. Additionally, it raised $126.3 million for a new fund called B Capital Ascent Fund II, LP.

In an interaction with VCCircle, Ganguly said: “The market for growth investing is ripe as valuations have come down dramatically. I expect a 10-15% valuation reduction by the end of this calendar year.”

“The limited partners of the fund are pension funds, family offices and business partners who have also invested up to 10% of the fund,” he added.

“The Growth Fund III portfolio includes companies that are transforming their respective industries and making a significant impact. Our strategic partnership with Boston Consulting Group and strong on-the-ground presence in key geographies allow us to provide our portfolio companies with specific insights and expert advice,” Saverin said.

Karan Mohla, who was recruited from Indian venture capital firm Chiratae Ventures, is part of the founding team of Capital Ascent and is tasked with identifying and investing in innovative early-stage companies in India and Southeast Asia.

B Capital had previously supported growth-stage software-as-a-service (SaaS) startups and now plans to expand to also make early-stage bets around the world, including in India and Southeast Asia.

In an interview last year, Mohla said B Capital expects SaaS, healthcare and business-to-business (B2B) platforms to comprise 60% of its early-stage investments in India and Southeast Asia.

Fintech companies and enablers in the B2B space will make up the rest, he said, adding that there is no specific target country or region for investments and it will depend on available opportunities.

In India, B Capital was a lead investor in MoEngage, a SaaS platform that offers insight-based customer engagement. The firm has also made other investments in India, such as in BlackBuck, a B2B tech-enabled logistics startup, and Bizongo, a B2B marketplace for packaging materials.

B Capital is also an investor in edtech giant Byju’s.

The firm has $6.3 billion in assets under management across multiple funds, and focuses on seed-to-late-stage venture growth investments, primarily in the corporate, fintech and healthcare sectors.

It operates in nine locations in the US and Asia, and also has a strategic partnership with Boston Consulting Group (BCG).

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