Saama in $57m final close on India VC fund

The latest fund, Saama Capital III, will maintain the same strategy as the firm’s previous vehicle, looking for seed and early stage investments with a particular focus on the financial technology, software as a service (SaaS) and non-technology consumer sectors. Saama has already made several investments from the fund, including a $6 million commitment to specialty ingredients maker Veeba last October alongside Verlinvest. It was the firm’s second investment in Veeba after a $6 million round in 2015 with DSG Consumer Partners.

Founded in 2006 by Ash Lilani (pictured) and Suresh Shanmugham, both formerly of Silicon Valley Bank, Saama has kept its funds small, with its first fund closing at $54 million in 2007 and the second reaching $80 million in 2013. The firm sees this approach as an asset when pursuing investments in younger companies and achieving satisfactory exits.

“We like to stay small, and we don't like to raise large funds, because we believe that this size fits our strategy perfectly, and this number puts us in a position to be able to deliver superior returns to our LPs,” Lilani told AVCJ.

Lilani expects the new vehicle to see a number of investments in India’s food and beverage space, to accompany Saama’s previous commitments to Veeba, teahouse chain Chai Point and cold-pressed juice producer Raw Pressery. The firm has already exited several investments in the space, including winemaker Sula Vineyards and seasonings manufacturer VKL. It sees the sector as presenting both considerable growth opportunities due to India’s growing consumer economy, as well as a number of potential buyers in the form of international players looking to gain access to the India market.

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• Topics
• South Asia
• Fundraising
• Venture
• India
• Saama Capital
• Consumer
• Technology
• Financial Services