Avataar Venture Partners Launches New Fund The launch of the new fund highlights the huge market opportunity in B2B tech and SaaS sectors which have been resilient through the funding winter
By Teena Jose
Opinions expressed by BIZ Experiences contributors are their own.
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
Avataar Venture Partners, a SaaS and B2B technology focused growth-stage investor, has launched its latest fund with a target size of $350 million. The launch of the new fund highlights the huge market opportunity in B2B tech and SaaS sectors which have been resilient through the funding winter. Avataar has already started investing from its new fund and is undergoing several discussions with companies raising their early growth rounds, including Series C.
"In the current market environment, Avataar is uniquely positioned to invest in growth-stage SaaS and B2B tech companies with $10 to $30 million ARR. This is a great vintage to invest in SaaS, the unrealistic hype in the market is gone favouring founders with superior execution and profitable business models. In general, we're proud to see that Indian SaaS companies are able to build global businesses far more efficiently, they spend less than half the amount of money for every dollar of ARR earned compared to global peers," said Mohan Kumar, Avataar.
It also focuses on B2B technology businesses serving the Indian market. The VC fund operates on a focused fund strategy where it works in trenches with only about a dozen companies per fund compared to hundreds for most other VC funds, as per the company's statement.
"Avataar has established its specialist operational VC model of working closely with founders who want to scale from $10 million ARR to $100 million quicker by leveraging the team's experience of having seen the scaling journey multiple times over. Three out of nine Avataar companies are already past $100 million ARR/$1 billion GMV, with another three to four on-track to hit the milestone in the next couple of years," said Nishant Rao of Avataar and former COO of Freshworks.
The development comes at a time when the SaaS market has been growing exponentially in India. Industry data reveals that about 70 per cent of the 20 Indian unicorns in 2022 are B2B companies.
