Sauce VC, a consumer-focused investor, has launched its third fund that aims to raise Rs 250 crore, as per a report by the Economic Times. Sauce VC has backed funds such as Mokobara, a new-age luggage brand; The Whole Truth, a healthy food start-up; Supertails, a petcare firm; and Men’s Innerwear XYXX.
A few weeks ago, Sauce VC received clearance from the Securities and Exchange Board of India (SEBI) for the new fund, said the company's founder and managing director, Manu Chandra, to the Economic Times. The company reportedly aims to support 15 to 16 early-stage consumer brands.
The capital for the fund will be raised by domestic limited partners or sponsors who back venture firms. The New Delhi-based investment firm also plans to pick up funds from existing investors. Here, the existing investors include family offices and corporate houses that are focused on the consumer sector.
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The first Sauce VC fund, which had a corpus of Rs 60 crore, closed in 2019. The second edition, which had a corpus of Rs 158 crore in 2021, closed in 2019. Additionally, the company has amassed a Rs 260 crore continuity fund to support the winners of its previous vehicles.
According to the company's website, Sauce VC is a high-engagement venture capital firm that focuses exclusively on consumers. It collaborates with companies that dare to upend the market, including entrepreneurs in the food and beverage, personal care, and apparel/lifestyle sectors.
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While highlighting that the firm aims to make investments from the main fund, Chandra said they want to remain consistent with this new fund in size, sector, and stage. He also highlighted how the investment firm took pre-revenue bets on several companies, including Mokobara, Hocco Ice Creams, and The Whole Truth.
