Cedar Capital announces first close of Rs 240 crore Fintech VC fund

Cedar Capital Raises Capital for Fintech Innovation

Cedar Capital, a collaborative venture between Cedar Consulting and IBS Intelligence, has achieved a significant milestone with the first close of its Rs 240 crore ($30 million) Fintech Venture Capital fund. This fund aims to invest in early-stage fintech startups, particularly those focused on BankTech and B2B solutions.

Focus on BankTech and B2B Fintech

The fund will primarily target BankTech and B2B (business-to-business) fintech startups. These include:

• BankTech: Companies developing innovative solutions for banks, such as core banking systems, digital lending platforms, and fraud prevention tools.

• B2B Fintech: Companies providing solutions that address specific needs within the financial services ecosystem, such as supply chain finance, trade finance, and wealth management solutions for institutions.

Early-Stage Investments with Strategic Focus

Cedar Capital plans to invest in approximately 15 early-stage startups. The initial investment size will range from Rs 4 crore to Rs 10 crore per company. This strategic approach allows them to provide crucial support during the critical initial stages of growth for promising fintech ventures.

Experienced Investors Back the Fund

The first close of the fund has attracted leading family offices and institutional investors from India and the Middle East. This participation from reputable investors demonstrates their confidence in Cedar Capital's vision and expertise in the fintech space.

Investing in a Changing Landscape

The Indian fintech ecosystem is undergoing significant changes. Regulatory adjustments by the Reserve Bank of India (RBI), such as increased risk weightage on consumer credit and stricter oversight on credit card operations, are impacting the landscape. However, Cedar Capital believes these changes present opportunities for innovative solutions.

Focus on Seasoned Entrepreneurs

Cedar Capital recognizes the importance of experienced leadership in the success of early-stage ventures. Therefore, the fund will prioritize backing seasoned entrepreneurs who possess the skills and experience necessary to navigate the evolving fintech landscape.

Experienced Leadership at Cedar Capital

Cedar Capital boasts a strong leadership team with extensive experience in the financial services and technology sectors. This includes:

• Sahil Anand: Founder of Cedar Capital, leading investment decisions.

• Subit Saurav: Co-leads investments, bringing expertise from impact investment firm Aavishkar Capital.

• Sunny Desa: Manages investor relations and oversees fintech investments, with experience at YES Bank.

Industry Veterans on the Advisory Board

Cedar Capital's advisory board comprises prominent figures from the financial services and technology industries. These include:

• Sanjiv Anand: Chairman of Cedar Group, providing valuable guidance.

• Pradip Shah: Founder of CRISIL and HDFC, offering insights from his vast experience.

• Bobby Parikh: Co-founder of BMR Advisors, sharing his knowledge of the investment landscape.

• Felipe Martinez: Chief Investment Officer of Revolut, bringing a global perspective.

Looking Ahead: Empowering Fintech Innovation

With the first close secured, Cedar Capital is well-positioned to empower early-stage BankTech and B2B fintech startups in India and other emerging markets. Their focus on experienced leadership, a changing regulatory landscape, and strategic investment approach position them as a key player in fostering a more innovative and efficient financial services ecosystem.