India-based venture capital firm, Orios Venture Partners, has delayed the final close of its third fund for a second time, now targeting the end of 2024. Initially aiming to raise $200 million, the fund has so far secured approximately $100 million from investors. This delay highlights the difficulties VC firms face in securing commitments from investors during uncertain times.
Founded in 2013 by Rehan Yar Khan and Anup Jain, Orios Venture Partners focuses on early-stage tech companies in India. The firm has invested in notable startups like PharmEasy and GoMechanic and manages over $300 million across its funds. The repeated delays in closing the third fund are influenced by the global economic slowdown, rising interest rates, and inflation, making investors cautious.
The delay in closing the third fund is likely to impact the startup ecosystem in India, as Orios has been a significant early-stage funding provider. With the closure pushed back, it could become difficult for startups to secure funding to scale up operations, potentially slowing the growth of India’s tech startup sector.
Despite these challenges, Orios remains optimistic and continues to support its portfolio companies while actively seeking new investment opportunities. The firm is in constant dialogue with existing investors to reassure them about its strategy and the potential of the Indian startup ecosystem, focusing on resilient sectors like fintech, health tech, and consumer tech.
Orios Venture Partners’ decision to delay the closure of its third fund reflects the broader market sentiment, with venture capital firms worldwide facing similar issues. Geopolitical tensions, the aftermath of the COVID-19 pandemic, and ongoing economic uncertainties have contributed to this cautious approach. While it poses risks for startups seeking funding, the delay also shows Orios’ commitment to raising the right amount under favorable conditions, navigating these challenges carefully to continue supporting innovation and growth within the startup ecosystem.
