Vertex Ventures SEA, India raises $541m for 5th fund (Update)

Photo credit: Vertex Holdings

Vertex Ventures Southeast Asia and India (VVSEAI), an early-stage VC firm, has closed its fifth fund with commitments of US$541 million. This is 80% larger than its fourth fund, which it raised in 2019.

The new fund exceeded the initial target of US$450 million. Its backers consist of new limited partners such as Japan Investment Corporation, International Finance Corporation, and Germany’s DEG, as well as existing investors.

The fund also has a dedicated US$50 million for supporting startups led by women founders.

“In the event the main fund invests in a startup that has at least one female founder, the parallel vehicle will provide additional capital that is based on a fixed ratio,” Ben Mathias, managing partner at VVSEAI, told Tech in Asia “The fixed ratio will be reviewed periodically over time.”

VVSEAI has historically seen “superior cash-on-cash returns,” said Ben Mathias, managing partner at the VC firm. It has had successful exits from investments in Grab, FirstCry, Xpressbees, and Recko, among others.

The regional fund has made over 80 investments so far. It plans to continue with its strategy of investing in sectors like enterprise tech, fintech, consumer internet, digital health, sustainability, and mobility.

VVSEAI is one of the six major VC funds under Vertex‘s global network, which collectively hold over US$6 billion in assets under management and have more than 300 portfolio companies.

The funds, which include ones that focus on the US, China, and Israel, have different industry specializations and are independently managed. Vertex Holdings – a wholly owned subsidiary of Temasek Holdings – acts as the anchor investor for the funds.

See also: VC funds tracker: 500 Global, Merah Putih add over $400m for SEA startups

Update (September 13, 3:40 pm): This article was updated to include a statement from VVSEAI managing partner Ben Mathias.