Exclusive: IDG Ventures is raising $175 mn India fund to back technology startups

IDG VenturesVenture capital firm IDG Ventures which has more than $6 billion under management, is raising $175 million fund Indian companies, NBW has learned. This is the company’s second India focused fund.

In 2007, the company had raised $150 million on back Indian technology startups. Since then, it has backed over 20 Indian companies including affordable healthcare startup Forus Health, Brainbees Solutions which runs FirstCry and Goodlife and mobile ad network Vserv.

Last month, IDG backed iCreate Software raised $9.2 million in an investment round led by Sequoia Capital and IDG Ventures.

Earlier in November, Ranjith Menon, the Vice President of IDG Ventures India had told reporters that the firm was looking to raise nearly $150 million for its second India fund.

The International Data Group is the lead investor in IDG Ventures and usually looks to invest $1 mn – $10 mn in technology and technology enabled businesses. It targets companies in the digital consumer, enterprise and engineering space.

Early stage investment in India is picking up with venture capitalists  investing over $762 million across 206 deals in 2012. Early stage investments accounted for 82 % of all VC investments in volume terms and 58 % in value terms in 2012. In 2012, IDG made four investments in the country.