Gemba Capital Launches Second Fund for Platform-First Businesses
In a significant development for the early-stage investment landscape, Gemba Capital has announced the launch of its second fund, totaling Rs 250 crore. The fund aims to invest in nearly 30 early-stage platform-first businesses over the next three years.
This new initiative underlines Gemba Capital’s commitment to nurturing innovation in fintech, consumer tech, and B2B platforms.
Strategic Focus Areas
The second fund will be strategically deployed across three primary sectors: fintech, consumer tech, and B2B platforms.
Each of these sectors presents unique opportunities for growth and innovation.
1. Fintech: The financial technology sector has been a hotbed for innovation, with startups revolutionizing everything from payments and lending to insurance and wealth management. By investing in fintech, Gemba Capital aims to support startups that are reshaping the financial services landscape.
2. Consumer Tech: Consumer technology covers a broad range of applications, from e-commerce and health tech to edtech and digital entertainment.
These startups are directly influencing consumer behavior and lifestyle, making them an attractive investment avenue.
3. B2B Platforms: Business-to-business platforms are essential for streamlining operations, enhancing productivity, and fostering collaboration among enterprises. By focusing on B2B platforms, Gemba Capital aims to drive efficiency and innovation in the enterprise sector.
Investment Strategy
Gemba Capital’s approach involves a first cheque of Rs 5 crore for initial investments, with a 30% reserve ratio for follow-on investments. This strategy ensures that promising startups not only receive initial funding but also have access to additional capital as they scale.
The Broader Context: A Booming Investment Landscape
Gemba Capital’s new fund launch comes at a time when the investment landscape is buzzing with activity. For instance, Planisware recently reported a robust H1 2024 revenue growth of 19.6% in constant currencies, reaching €86.6 million. This performance is fully in line with its FY planned trajectory and reflects the growing demand for enterprise solutions.
Similarly, Gartner predicts that 30% of generative AI projects will be abandoned after the proof of concept by the end of 2025.
Despite this, the rush into generative AI continues, with CFOs focusing on yielding high ROI during this period.
Moreover, the World Trade Organization (WTO) recently reached a milestone in its Joint Statement Initiative on Electronic Commerce, paving the way for paperless cross-border commerce. This development is expected to significantly benefit B2B platforms by simplifying international trade procedures.
Gemba Capital’s launch of its second fund is a testament to the growing opportunities in platform-first businesses. By focusing on fintech, consumer tech, and B2B platforms, the fund aims to drive innovation and support startups that are poised to become the next big disruptors in their respective fields. This move aligns well with the broader trends in the investment landscape, ensuring that Gemba Capital remains at the forefront of venture capital in India.
For more insights into the evolving investment landscape and the latest in enterprise solutions, check out Planisware’s H1 2024 results and Gartner’s predictions on generative AI.
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