Early-stage venture capital firm Unleash Capital Partners, which launched its debut fund nearly two years ago, has marked the final close of the investment vehicle, a top executive told VCCircle.
The firm secured Rs 300 crore ($33.8 million) in capital commitments for the fund from 35 Japanese Limited Partners (LPs), surpassing its target of Rs 250 crore, managing partner Natsuki Sugai said. Most LPs are institutional investors though there are a few high-net-worth individuals, too, he said.
The fund was set up by Japanese firm Gojo & Company, and Sugai, who is a founding-stage member of Gojo, to back early-stage startups in the financial services sector. Sohil Shah, Gojo’s investment lead and head of venture capital, had also joined Unleash as a founding member and investment partner.
“The interest from Japanese investors has been increasing (in India). Our fund is 100% backed by Japanese investors and we’ll be deploying it entirely in India,” said Sugai.
He said the fund will channel Japanese capital into Indian fintech and financial services companies. “By empowering these early-stage companies, we believe we can create scalable solutions that lead to profound and lasting financial equity for credible startups that will pave the way for disruption in India.”
The fund backs startups between seed and Series A stages, particularly those that offer products to financial inclusion in the country. It is focused on backing companies creating direct impact through accessible financial services, as well as those that create indirect impact by advancing the capabilities of ecosystem players through technology and infrastructure innovation.
“Individual ticket sizes will range from Rs 5 to 18 crore (approximately $500,000 to $2 million), with Unleash Capital having the flexibility to lead investments or co-invest alongside like-minded investors,” said Sugai. “We have plans to make a total of 12 to 15 investments.”
So far, it has invested in seven companies. These include full-stack agri-tech platform Ayekart, non-baking lender CredRight, and AI-driven collections platform CredResolve. It will reserve about 30-40% of the capital for follow-on rounds.