Alternative Investment

The Capital Quest | 360 One floats two funds after buying one of India’s oldest angel networks

360 ONE, earlier known as IIFL Wealth and Asset Management, has floated two new early-stage funds under the banner of Mumbai Angels, one of the two pioneering angel networks in the country, which it had acquired recently.

Mumbai Angels was one of the largest players in the early-stage investment space, having started in 2006, the same year the Indian Angel Network (IAN) was set up. Mumbai Angels was initially a bigger force to reckon with, but over time IAN has taken a centre-stage in attracting a growing crop of angel investors in the country.

360 One had acquired a majority stake in Mumbai Angels last November to bolster its early-stage investment practice while also opening up cross-selling opportunities to the wealthy. It had valued Mumbai Angels at around 5x its FY22 revenue, pegged around Rs 10 crore.

360 One, one of the top wealth and alternative asset management firms in India, said it will now be looking at a greater funnel of deals, with a deeper penetration in the early-stage startup pool.

This adds another spoke to the alternative investment practice of 360 One, which recently brought on board Iron Pillar co-founder to head its private equity and venture capital business. The move involved mid-stage VC firm TrueScale Capital coming under its umbrella.

The investment platform announced the launch of two new funds: one structured as an angel fund and another as a conventional venture capital fund, both under Category 1 of the Securities and Exchange Board of India’s AIF classification, under the Mumbai Angels umbrella.

The angel fund does not involve pooling of capital, and each investment is treated as a separate scheme, providing flexibility to both investors as well as startups. While investors get the freedom to invest in a larger number of select deals, the startups can have a leaner cap table.

The second investment vehicle, a VC fund, is aimed at those looking at investments over a wider portfolio, without getting into the nitty gritty of all participating startups. This fund will enable investors to participate in every deal on the platform via a pooled corpus.

“With this new set of offerings, we will be able to further provide clients some interesting investment opportunities at an early stage in companies, which have the potential to bring about disruptions in their respective industries,” said Karan Bhagat, Founder, MD and CEO, 360 ONE.

360 ONE has aggregate assets of more than Rs 3,33,000 crore under management, as on September 30, 2022.

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