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Cedar Capital Achieves First Close of $30 Mn FinTech Fund

Cedar Capital achieves the first close of its $30 Mn FinTech Venture Capital fund, attracting leading investors from India and the Middle East to support early-stage startups in the banking and B2B fintech sectors

Cedar Capital, the fintech-focused venture capital arm of Cedar and IBS Intelligence, has reached the first close of its INR 240 Cr ($30 Mn) FinTech Venture Capital fund. The fund has attracted leading family offices and institutional investors from India and the Middle East.

With an initial cheque size ranging from INR 4 to 10 Cr, the fund aims to support around 15 early-stage startups, focusing primarily on banking, B2B fintech, insurance companies, NBFCs, and other financial services.

Sahil Anand, founder and managing partner of Cedar Capital, expressed optimism about the fund's success despite challenges in the venture capital environment. He emphasized the fund's sector-specialist focus and global reputation in research and consulting over 60+ years.

The fund, following a limited partner-general partner (LP-GP) model, expects to finalize its initial deal soon. It also plans to further invest in 8 to 10 companies from its portfolio in the future.

In March 2023, Cedar Capital announced the launch of its fintech-focused venture capital fund, targeting regions such as India, the Gulf Cooperation Council (GCC), and other markets. The fund appointed Subit Saurav from Aavishkar Capital and Sunny Desa from YES Bank to lead investments and oversee investor relations and fintech investments, respectively.

The advisory board of Cedar Capital includes industry veterans such as Sanjiv Anand, Pradip Shah, Bobby Parikh, and Felipe Martinez.

This development reflects ongoing efforts by various institutional investors to support India's startup ecosystem, including the establishment or conclusion of funds like Colossa Ventures, Navam Capital, Cactus Venture Partners, Rockstud Capital, and Equirus.

Despite a 12% decline in fintech funding in India in Q4 2023 compared to Q4 2022, totaling $413 Mn, fintech SaaS and lending tech sectors continued to attract investor interest, according to the State of Indian Fintech Report Q4 2023.