Titan Capital, an early-stage investment firm co-founded by Snapdeal’s Kunal Bahl and Rohit Bansal, has taken the final close of its Winners’ Fund at Rs 333 crore.
The new fund will primarily support the company’s existing portfolio companies during later-stage financing rounds. Titan Capital raised Rs 200 crore for the fund in August 2024, but opted to increase its size by exercising a green option due to strong investor interest.
Target new existing portfolio companies
The Rs 333 crore fund will focus on providing follow-on investments for nearly 20 companies in Titan Capital’s portfolio. According to Bahl, each company will receive an average investment of Rs 15 million.
Titan Capital, which has invested in over 280 startups since its inception in 2011, targets companies in the pre-series A and series A stages. Some of the notable startups that Titan Capital has backed include Razorpay, Ola, Mamaearth, Urban Company and OfBusiness.
First fund with external capital
This is the first time Titan Capital has raised external capital for a fund, marking a shift from its previous model where investments came from Bahl and Bansal’s personal wealth.
The Winners Fund has attracted contributions from a variety of investors, including Indian family offices, senior executives at large companies and founders of Titan Capital’s portfolio of startups.
The founders aim to build an ecosystem of well-connected investors to support these startups in their growth journey.
Recent investments and returns
Titan Capital has already invested in three startups through the new fund. These include Convin, an AI-powered tool for customer service teams; Beco, a direct-to-consumer eco-friendly home products brand; and Simplismart, a SaaS-based platform.
Bahl noted that two or three additional deals are in the final stages of finalization. The company has seen significant returns from its early investments, such as its Rs 57 lakh investment in Urban Company, which yielded a return of Rs 111 crore.
Similar returns were achieved in startups like Ola, OfBusiness and Credgenics.
Lower risk, lower expected returns
The Winners Fund represents a strategic pivot for Titan Capital as it moves toward later-stage investments where the risk profile is typically lower compared to early-stage companies.
Bahl explained that while potential returns may be lower in later stages, loss ratios are also expected to decline. He added that many of the firm’s early investments carried higher risks due to the unproven nature of the businesses, but later-stage investments benefit from clearer signs of success.
By broadening its focus and attracting external capital, Titan Capital aims to strengthen its support for its portfolio companies while reducing investment risk.
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