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Mumbai Angels to launch $20m sidecar fund

  • Andrew Woodman
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Mumbai Angels, an Indian investment firm focusing on early stage companies, is to launch a maiden sidecar fund of INR1 billion ($20 million) next month.

The fund, to be raised from Mumbai Angels members, high net worth individuals and institutional investors, will be the first of its kind in India. It will allow angel investors to be part of the follow-on investment in portfolio firms, or during series-A funding.

"Many a time, new members miss out investing in a promising start-up. With sidecar funds, they would now be able to invest in a company that's in the process of raising the next round of funds. Also, a sidecar fund would allow Mumbai Angels to continue to have a larger say in the investee firm," Prashant Choksey, founder of Mumbai Angels, told The Business Standard.

The fund will be sector agnostic and invest in 25-30 early-stage companies over the next three years, committing $50,000-200,000 per company with option to invest in follow-on rounds.

Founded by Prashant Choksey and Sasha Mirchandani in 2006, Mumbai Angels has invested in 50 companies in the last six years. It has also recorded eights exits and follow-on funding for 15 companies. Starting with just six members, the firm now has a membership base of 150.

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