New Delhi, Sept. 17 -- Singularity AMC, which is backed by veteran investor Madhusudan Kela and has invested in companies like WebEngage and mCaffeine, has made the final close of its second investment vehicle, VCCircle has learned.

The investment firm, which was founded in 2021 and mentored by industry veteran Madhu Kela, has made the final close of the Singularity Growth Opportunities Fund II at Rs 2,000 crore (around $228 million).

Singularity had been targeting Rs 1,500 crore for the vehicle with a Rs 500 crore green-shoe option. In December 2023, it onboarded Self Reliant India Fund and Small Industries Development Bank of India's fund of funds scheme as investors for its second investment vehicle.

Around 22% of capital came from institutions, including leading domestic DFIs, public and private banks, insurance partners, and endowments, according to Singularity AMC. The firm also pointed out that it saw strong participation from large family offices, most of whom have doubled down after participation in the first fund.

The new fund follows the debut Singularity Growth Opportunities Fund I, a Rs 1,400 crore vehicle launched in 2021 that backed consumer internet brands such as WebEngage, mCaffeine, and healthcare platforms, alongside growth bets in fintech and industrials. Many of those portfolio companies have since raised follow-on rounds at higher valuations.

With Fund II, the firm plans to write Rs 75-175 crore (around $8 million to $20 million) cheques into 12-15 companies across sectors such as energy transition, consumer products, next-gen industrials, healthcare, and financial services.

The second fund's deployment is already underway, with 52% of the fund's corpus committed with a strong pipeline. It invested Rs 25 crore in premium bike maker Classic Legends Pvt. Ltd, which operates under the brand Jawa and is a subsidiary of Mahindra & Mahindra Ltd.

It also picked stakes in battery recycling firm Lohum and Bhilwara Energy, Sterling & Wilson Data Centre, IVF healthcare platform Sabine, Jawa motorcycles maker Classic Legends, and a Mahindra & Mahindra subsidiary, sustainable EV venture Qucev and luxury watch retailer Deal 7.

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