New Delhi, Jan. 29 -- Red Vanda Partners, a venture capital firm based in Aizwal, Mizoram, has floated a venture capital fund Bana Kaih Venture Capital Fund and is targeting to raise a corpus of Rs 100 crore (close to $11 million).

This includes Rs 50 crore as a greenshoe option, Malsawmkima Sailung, Managing Partner, Red Vanda Partners, told VCCircle.

The Category I alternative investment fund (AIF) registered with the market regulator as 'Senhri Investment Fund' was unveiled on Wednesday in Aizwal by Mizoram's Chief Minister Lalduhom at National Startup Day - Mizoram Edition organised by Mizoram Startup Mission under the Planning & Programme Implementation Department, in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT).

Mizoram's state government has committed Rs 20 crore to the fund, coming in as the anchor for the vehicle.

"Our limited partners base is a mix of institutional and long-term aligned capital. The anchor support comes from a state-backed sponsor entity, which reflects strong public sector commitment to building a venture ecosystem in the region," said Malsawmkima Sailung.

"Alongside this, we are in discussions with and seeing interest from Fund of Funds platforms, family offices, and private investors who share our long-term view on early-stage entrepreneurship," he added.

Senhri Investment Fund intends to make the first close in about a month.

The fund takes a sector-agnostic approach in the investments it makes in tier II and tier III cities, while it focuses on backing technology companies in the mainstream region. These investments would be across sectors with a large addressable market including consumer and retail, financial services, healthcare and wellness, agriculture and food, and logistics and supply chain.

"We do not invest in pure services or traditional SMEs," according to its website.

The investments will be directed towards founders building category-defining companies that leverage breakthrough technologies, who have deep technical expertise, clear product vision, and the ambition to build global companies.

The fund's focus will be on companies from pre-seed to Series A stages, but will also make selective pre-IPO bets as well. The fund takes a board observer seat at seed stage, while a board director seat at Series A stage.

"We can invest up to Rs 5 crore [or $540,000 in a company] and our reserve for follow-on [funding] is in 2:1 ratio [Capital Reserved: Initial Cheque]," he added.

Published by HT Digital Content Services with permission from VC Circle.