Mumbai-based VC firm Orios, known for investments in MobiKwik, PharmEasy, and Country Delight, is planning to launch its fifth fund next year, targeting $150 million to $200 million. Orios invests across all sectors, including software-as-a-service (SaaS), agritech, and healthtech, focusing on early-stage startups with investment sizes of $1-2 million.
Progress of the Fourth Fund
Orios has already invested nearly half of its $150 million fourth fund in startups such as climate-tech company Varaha and fixed-income lender Lendbox. Partner Sukhmani Bedi said the firm aims to complete its current fund investments by early next year and start raising the fifth fund by June 2025. Bedi believes that $150 million-$200 million is a suitable size for strong returns.
Early Success and Expansion
Orios launched its first fund in 2014, raising ₹300 crore and investing in 18 companies, including Country Delight, PharmEasy, and Zostel. The fund has already returned 1x to its investors, with higher returns expected in the coming years. The firm also set up a $30 million opportunities fund in 2021 to reinvest in successful companies like Country Delight and PharmEasy.
Addressing Challenges and Strengthening Governance
Recent issues with portfolio companies GoMechanic (financial misreporting) and PharmEasy (valuation drop) prompted Orios to implement stricter audits and governance measures. Despite these setbacks, Orios remains committed to supporting domestic startups and the Indian market.
Focus on Domestic Market and Emerging Sectors
While the firm is open to cross-border startups and SaaS opportunities, it prefers to focus on companies addressing Indian problems. Orios sees potential in logistics and tech-enabling companies rather than direct investments in quick commerce, which grew tenfold from 2021 to 2023.
Growing Opportunities in India
Rehan Yar Khan, managing partner at Orios, noted that opportunities for startups have significantly increased since their first fund, with technology reaching all parts of India and expanding beyond consumer internet to B2B, SaaS, EVs, climate-tech, and hardware.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
