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Business News/ Money / Together makes first close of $150 mn fund

Together makes first close of $150 mn fund

The fund will be used for early stage investment in SaaS, AI startups

Together Fund team members (from left): Manav Garg, Girish Mathrubootham, Shivam Kant Rajvanshi, Pratyush Choudhury, and Shubham Gupta. (Credit)Premium
Together Fund team members (from left): Manav Garg, Girish Mathrubootham, Shivam Kant Rajvanshi, Pratyush Choudhury, and Shubham Gupta. (Credit)

Together Fund, an early-stage venture capital firm focused on software-as-a-service (SaaS) companies, has made the first close of its second fund that has a corpus of $150 million.

The proceeds of the fund will be used to make early stage investment in SaaS and artificial intelligence (AI) startups, the VC firm said on Thursday, adding the fund has already received commitments from institutional investors from the US and Asia.

The firm didn’t say how much it raised in the fund’s first close.

Together Fund is led by founders of Freshworks and Eka Software, and a former executive of Matrix Partners.

The latest fund, which comes two years after its maiden fund of $85 million, will add to the early-stage dry powder in the country.

The fund, similar to the previous vehicle, will invest in areas such as SaaS, enterprise software, developer tools, open source software, cloud-native infrastructure, and API-first businesses, along with generative AI.

“We are at a liminal moment in history — a period of transformative transition where every business wakes up to the power of AI," the VC firm said. “Amid this paradigm shift, all of SaaS will transform to SaaS.AI—every startup leverages AI in a meaningful way to provide new solutions that are vastly superior to the status quo," it added.

Together Fund has already invested in three Gen AI businesses in healthcare, developer infrastructure, and modern marketing stack in the last three months.

Together was co-founded by Girish Mathrubootham of Freshworks, Manav Garg of Eka Software, Shubham Gupta and Avinash Raghava, former executives of Matrix Partners and Accel respectively. Raghava has since left the VC firm and is currently chief executive of SaaSBOOMi.

Together was started with a founder-first approach, helping entrepreneurs with knowledge and networks beyond capital.

“We wanted to build Together as a firm that really gets founders, helping India step up its game in the product world," Mathrubootham said on Twitter. “Now, with 20 awesome startup teams in the mix, our dream’s turning into reality," he said.

Through the first fund, the company backed startups such as procurement solution Spendflow, developer tool Insightly, IoT platform Bytebeam, no-code platform NocoDB.

Of these, six portfolio companies (Kula, Privado, RevenueHero, Spendflo, Spry, Toplyne) have raised follow-on funding rounds from global investors, it said.

The second fund will continue to focus on seed and Series A investments with cheque sizes ranging from $1 million to $5 million.

“Raising our second fund speaks to the remarkable progress of our existing portfolio and the technology ecosystem in India, even amidst challenging funding and macroeconomic conditions," said Garg.

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Published: 28 Jul 2023, 01:07 AM IST
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