Sashi Reddi Launches $100 Mn Tech-Focused Early Stage VC Fund

Sashi Reddi, a managing partner at venture capital firm SRI Capital, has launched a $100 Mn technology focused early-stage venture fund. SRI Capital Fund-I, a Delaware-registered investment vehicle, will look to invest in enterprise software ventures in the US and India, with a particular focus on startups working in the emerging areas of deep tech.
The development was confirmed by SRI Capital to Inc42.
Anchored by a $20 M commitment from the family office of Sashi Reddi, the fund is raising capital primarily from investors in the US and Europe.
“There is a funding gap for Indian start-ups targeting US enterprise customers. Indian VCs have struggled to support these US-focused startups whereas US VCs typically do not understand India based tech teams. This is the gap that SRI Capital will fill,” said Sashi Reddi, managing partner of SRI Capital.
Besides Reddi, partners in the fund include Doc Parghi, who is based in Philadelphia, as well as two more advisory partners, yet to be announced, based in India. The fund has already completed its first close at $40 Mn and expects to have its full corpus by the end of the first quarter of 2019.
The fund will look to invest at a pre-Series A stage with ticket size ranging between $1-3 Mn, and going up to $5 Mn in select ventures.  It expects to make six-eight investments per year.
Sashi Reddi And SRI Capital: The Journey So Far
Sashi Reddi is an entrepreneur-turned-investor and currently has around 30 investments, primarily in enterprise software and deep tech. He counts Indian startups such as YuppTV, FabHotels, HealthifyMe, and Shubh Loans among the notable investments in his portfolio.
Previously, Reddi founded AppLabs, the world’s largest independent software testing company with over 2,500 QA professionals in India, the US, and the UK. AppLabs was funded by Sequoia Capital India. CSC acquired AppLabs in September 2011.
It must be noted that Series A investors in AppLabs received a 10X return on their investment in six years.
Reddi said in a previous interaction with Inc42, “When I sold my last company, AppLabs, I was around 46 so I thought I would start another company — after all, that is the one thing I know how to do. I started investing small amounts as an angel investor in the beginning. That is when I got to meet dozens of superb entrepreneurs with brilliant ideas, unlimited energy, and big dreams.”
Reddi later realised that rather than competing with these startups, he should use his money, global network, and startup experience to support these founders to realise their vision. “That is when I formed SRI Capital, funded it with my own capital, and started investing on a full-time basis,” he added.
A serial entrepreneur, Reddi had formed three other companies prior to AppLabs.  These were EZPower Systems (a web content management pioneer acquired by DocuCorp, and eventually a part of Oracle), iCoop (a group purchasing dotcom), and FXLabs (a leading Indian game developer acquired by Foundation 9 Entertainment).
Many New Funds Being Launched
After the 2016 funding winter, the startup ecosystem moved towards market correction, leaving less room for early-stage startups to raise funds. Shockingly, this continued till the first half of 2018 as well.
According to Inc42 DataLabs’ funding report H1 2018, in the first half of the current year, startup funding deals witnessed a 17% drop while the funding amount dropped by 47% as compared to H2 2017.
“The fall in the number of deals in the seed and bridge stages seems worrisome, even though the total funding in these stages was higher than in H2 2017. This essentially means that fewer startups are being able to crack seed-stage funding deals. Investors have clearly been discerning in 2018 so far,” the report said.
It must be noted, however, that although the number of deals in the seed stage decreased, investors have increased their ticket size in early-stage startups. Investor groups are sensing the available opportunity and, in the past month, we have seen the launch of many new funds with a big corpus.
Recently, Chinese venture capital firm Ganesh Ventures announced its plans to make an aggressive entry into India with its $250 Mn fund.
Ganesh Ventures made its first investment in India with IndiaLends. With ticket sizes spanning $500K-$5 Mn, Ganesh Ventures seeks to connect Indian entrepreneurs with the Chinese startup ecosystem and stakeholders to tap into cross-border resources, exchange learnings, and achieve market synergies.
Rockstud Capital, JLL Spark, Axilor Ventures, Artha India Ventures, Cisco, Unicorn India Ventures are some other companies that launched startup funds earlier this year.

Trending News

BigBasket eyes 40% revenue from private labels next fiscal

Flipkart appoints Smriti Singh as chief human resources officer

CitiusTech eyes $500M revenue in five years

China's feels pressure as sales of big ticket items slow down

E-pharmacies divided over their legal status

CapitalG’s India head Kaushik Anand quits, will join A91 Partners

Infosys completes JV formation with Temasek

With Walmart in driver's seat, Flipkart set to speed up hiring

Mumbai: Now, Uber fare to factor in fuel rate fluctuation

Amazon, Flipkart under ED probe for alleged violation of FDI norms

Paytm sets up wholesale entity for ecomm business like rivals

Uber posts $1Bn loss in quarter as growth in bookings slows

Infosys to open Texas hub, hire 500 Americans by 2020

Swiggy's $300M secondary share sale to be the fastest liquidity event for growth-stage investors

Over half of billion-dollar startups in US are founded by immigrants

Apple to tighten e-commerce play in India post Amazon deal

Amazon Wholesale's FY18 revenue up 73% due to B2B focus

Twitter cuts suspect users from follower counts again

Payments majors Visa, Mastercard and American Express may be taxed on India income

IRCTC wakes up after 2 years to fix its security bug

Alibaba's on-demand online services unit raises $4Bn, now valued at $30Bn: Sources

Twitter is looking to take the conversation to Bharat next

Bharat going digital for payments

Reserve Bank of India plans payments watchdog

Apple not in settlement talks 'at any level' with Qualcomm: Report

Payment cos witness growing adoption of digital gold during festival season

Meesho raises $50M from DST, Shunwei, RPS Ventures

BMTC will soon allow commuters to buy tickets using digital wallets

Flipkart, Amazon India register significant user base growth during the festive month

Rural e-commerce market a $10b-$12b opportunity in the next four years

Amazon goes shopping for Future Retail, to buy 9.5% stake

Walmart’s veggie-tracking technology: Use Blockchain

India's oldest cryptocurrency exchange Zebpay shuts down

Apple's growth in India is becoming a challenge: Tim Cook

Google India tax row: $2 billion remittance in 5 years may add to tech giants load

Want WhatsApp to cooperate with law enforcement agencies: RS Prasad

Flipkart acquisition won’t hit Walmart India plans

Twitter India earnings fall 14% in 2017-18

Alibaba to help manufacturers solve future problems with technology: Jack Ma

Ola likely to hit $5.5Bn valuation with Steadview's $100M investment

Flipkart India losses widen to Rs 2,063.8 crore in FY18

Google to give away USD 25 million to fund humane AI projects

Swiggy FY18 revenues surge 232% to Rs 442 Cr, inches closer to Zomato

Paytm's losses go up 270% to Rs 3,393 Cr driven by e-tail business

Flipkart told to stop selling products under MarQ private label

Once considered as rivals, Ola and Uber could now be saviour of autorickshaws

HCL Tech to hire nearly 30,000 people, applies for 640 H-1B visas

Zensar Technologies Q2 profit up 49% at Rs 93 crore

Facebook beyond Facebook? Instagram, Messenger & WhatsApp step up

Paytm Mall expects fashion, grocery to drive its growth

HDFC Bank Q2 net profit climbs 21% to Rs 5,005 crore on robust core income

Zomato, Swiggy and UberEats double salaries of delivery staff in some cities

Funding Galore: Indian Startup Funding Of The Week

“Over $3 Bn Was Invested Across 372 Deals With 54 Mergers & Acquisitions”

E-commerce players brace for big battle over online pharma

Walmart signs 5 year Cloud tech partnership with Microsoft

Flipkart adds recharge, travel tabs

Unhappy with WhatsApp reply, Indian govt may send second notice

Cars24 closes $50M funding to fuel its expansion plans

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities