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Bengaluru: IIFL Equity Opportunities Fund is raising a fund of funds (FoF) of up to 750 crore, including a 250 crore green-shoe option, to invest in technology-focused venture capital (VC) funds, said a company executive.

The FOF is an offering of IIFL Asset Management Ltd (AMC), which is a subsidiary of IIFL Wealth Management Ltd. It will invest in Blume Ventures, Orios Venture Partners, Kae Capital and two other VC firms which are yet to be finalized.

IIFL AMC in the past has invested in Blume, Orios and Kae Capital.

IIFL Equity Opportunities Fund FoF aims to invest in VC funds that are primarily focused at providing follow-on capital to digital startups along with other marquee investors.

“We are trying to get exposure to startups that have reached the growth stage ( funding rounds of Series B and above) and will be diversified across sectors such as health tech, fintech, edtech etc," Umang Papneja, chief investment officer, IIFL Wealth said in an interview.

Papneja said the capital will be raised from high-networth individuals (HNIs) and fund-raising will be completed by January.

IIFL AMC had launched its first seed fund in 2015 to invest in startups, and raised 448 crore of commitments. It had invested through both the fund of funds route in other VC firms, as well as made direct investments in startups.

It launched IIFL Seed Ventures Fund 2 in 2019, and raised commitments of around 545 crore, and directly invested in startups such as Unacademy and Box8 among others.

Papneja said the investment climate has got better and is returning to normal, with the vaccine in sight.

“There is demand for capital from startups who are eyeing growth," he added.

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