India's 360 One buys Mumbai Angels, launches two funds

It is touted as the first deal globally in which a strategic investor has acquired a majority stake in an angel investing firm. Bain has about 25% of 360 One, acquired last April for INR 33.8bn by taking out positions held by General Atlantic and Fairfax India Holdings.

The latest deal – which values Mumbai Angels at around 5x its 2022 revenue at INR 457.3m (USD 5.6m) – was agreed last November. Its announcement this week coincides with 360 One’s alternatives business, IIFL Asset Management, acquiring TrueScale Capital, a venture growth firm established in 2021 by Sameer Nath, formerly of Iron Pillar.

Mumbai Angels’ two new funds include an angel fund targeting INR 10bn with a greenshoe option of INR 2bn and a conventional venture capital fund targeting INR 3m with a greenshoe option of 2m.

Both vehicles will focus on early-stage start-ups, although the latter represents a strategic expansion in the sense that LPs will be exposed to a broader portfolio in a pooled scheme. The angel fund is structured to treat each investment as a separate scheme, giving LPs flexibility on company-by-company exposure and founders more consolidated cap tables.

“Now, we have the might of 360 One platform and will be able to create scale with the investor base access that we get with this acquisition. For 360 One, early-stage investments as an asset class can be offered to their client base. We plan to launch more products in the next couple of months,” Mumbai Angels CEO Nandini Mansinghka said in a VCCircle article republished by 360 One.

360 One has about INR 3.3trn in assets under management across wealth management, asset management, credit, and corporate finance. The customer base spans high net worth and ultra-high net worth individuals, affluent families, family offices, and institutional clients, including some 6,800 Indian families. There are some 900 employees across 28 offices in six countries.

Founded in 2006, Mumbai Angels is recognised as one of the oldest organisations of its kind in India and a breeding ground for much of the investment talent in the more institutional VC scene. It has invested around INR 10bn in more than 220 start-ups to date. There are currently around 700 investor members.

India’s seed, angel, and micro-VC space is expanding rapidly. Fundraising activity in recent months has included Kae Capital, Axilor Ventures, Fundamental VC, Inflection Point Ventures, Pi Ventures, Athera Venture Partners, Artha India Ventures, Indian Angel Network, Sequoia Capital India’s Surge programme, and Merak Ventures, a spinout of GrowX Ventures.

Last September, Billionaire Venture Capital and DBS Bank agreed to invest USD 200m in 150m seed-stage start-ups in India, leveraging relationships with local incubators Venture Catalysts and AIC Raise. Other players in this space include JioGenNext, Antler, LetsVenture, and Anicut Capital.

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• Topics
• South Asia
• GPs
• Fundraising
• Venture
• India
• Bain Capital Asia
• IIFL Wealth Managment
• seed