Mumbai: Early-stage venture capital firm Unicorn India Ventures expects to hit the first close of its maiden venture debt fund at 200 crore by the end of July, a senior executive said.

Mumbai-based Unicorn India is looking to raise 600 crore for the debt fund. Founded in 2016 by Anil Joshi and Bhaskar Majumdar, the firm VC firm had launched its maiden fund last November.

“We are looking at a ticket size of 5-30 crore, and will target firms that have raised Series A and C rounds. We are also keen to co-invest in VC-funded firms, especially ones with strong cash flows. We are bullish on business to business, software as a service, enterprise solution and fintech," said Joshi, managing partner, Unicorn India Ventures.

Venture debt is substantially different from regular corporate lending, which is generally asset-backed and provided to profit-making firms. Unicorn India is raising the debt fund from a mix of institutional investors, family offices and high net-worth individuals, said Joshi. It is targeting a second close at 350 crore.

Unicorn India has so far exhausted half of the 100-crore venture capital fund it had raised last year, and aims to launch its second fund of 400 crore by next year.

“So far, we have invested in 18 companies and have deployed 50% of the fund. We will do a few more investments and keep rest of the money for follow on rounds. We will aim to launch a tech-focused equity fund in 2019. We will either launch a single fund of 400 crore or we would raise two funds separately for 00 crore and 00 crore," said Joshi.

The fund has made investments in startups, including micro-lending platform SmartCoin, rental marketplace GrabOnRent, digital-marketing-focused artificial intelligence start-up Boxx.ai, pharmaceutical-sector-focused software-as-a-service company Pharmarack, among others.

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