In his interview to the magazine, ChrysCapital Co-Founder and Senior Managing Director Ashish Dhawan, explains why his firm decided to raise a $550 million fund fourth fund so close on the heels of its $258 million third fund.
After we launched Fund III in early 2004, we realised that a lot more capital would come into India by the end of 2005. By late 2005, the fund-raising environment had turned euphoric and we decided to go out and raise Fund IV. The investment climate is not going to be as good going forward, and we want to have a strong balance sheet before we go into a bear market.
Each time ChrysCapital has raised a fund, it has doubled its corpus — $64 million, $127 million, $258 million and $556 million. Two of these funds — Fund II and Fund III — were raised at a time when the fund-raising scenario was extremely hostile. In fact, apart from ICICI Venture and WestBridge Capital Partners, no other Indian fund has been able to raise fresh capital till date.
Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.