Upekkha, a US-based Value SaaS Accelerator and an AngelList-style early-stage investment firm, announced it has raised $9 million from WestBridge Capital towards its rolling fund that will look to invest in around 50-60 startups in the current financial year, according to ETtech report. This is the first of its kind alternative investment fund (AIF) in India.
In a rolling fund, the investor will invest in companies on a revenue-based financing model which is not debt but equity led. The software as a service or Saas-focussed investment firm was launched in January 2021. It typically invests around $100K-$200K in companies.
In 2021, it backed around 10 startups, and also participated in a Series A round of one of its portfolio companies, a senior company official said.
“This year UP Funds will invest in 60 startups across three cohorts of the Upekkha accelerator program,” said Shekar Nair, cofounder and partner, Upekkha.
“When we started WestBridge 20 years ago, we wanted to help Indian startups go global. Before Upekkha, India lacked a strong ecosystem and platform focused on helping early-stage SaaS founders build successful and large businesses. Today we see Upekkha as a key partner, bridging that gap for early-stage SaaS founders who want to go global while staying rooted in India,” said Sumir Chadha, cofounder and managing director at WestBridge Capital.
According to Nair of Upekkha, the next big growth story will be India SaaS. “We are already seeing it happen. India SaaS has seen phenomenal growth in the last five years. By 2025, it is positioned to reach $30bn in revenue and double its global market share to 8%.”
“As opposed to Vanity SaaS – that is raising too much too early without solving unit economics – the Value SaaS way helps founders build a Revenue Flywheel engine for capital-efficient growth first. This gives founders greater control over their growth trajectory: whether they want to take the high-scale (VC) route, opt for a strategic exit or stay Founder Forever,” the firm said.
Over 4 years, Upekkha has accelerated 72 startups, of which 7 of the first 10 have crossed $1 million in ARR profitably.
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