Sauce VC, an investment firm specializing in consumer-focused ventures, has closed its third fund at ₹365 crore, surpassing its initial target of ₹250 crore. This announcement was made by the firm’s founder, Manu Chandra.
The Delhi-based firm has a track record of investing in emerging brands like Mokobara, a luggage maker, The Whole Truth, a company offering healthy snacks, and Supertails, a pet care business. The fund has secured investments from notable entities, including Pratithi Investments, the family office of Infosys co-founder Kris Gopalakrishnan, Sharrp Ventures of Marico promoter Harsh Mariwala, Singularity Ventures, and Saison Capital.
A substantial 95% of the funds were sourced from domestic investors, with nearly 80% being returning supporters from Sauce VC’s previous funds.
Chandra revealed that the firm received subscription interest totaling approximately ₹700 crore. However, they chose to prioritize existing limited partners (LPs) and maintained a disciplined approach to capital deployment, ensuring they did not exceed the planned amount.
Sauce VC’s journey began with its first fund closing at ₹60 crore in 2019, followed by a second fund of ₹158 crore in 2021. Additionally, they established a continuity fund of ₹260 crore to continue supporting successful ventures from their earlier investments.
The third fund will continue to focus on early-stage investments, with an average cheque size of around ₹5 crore. About 75% of the fund is earmarked for follow-on investments. The firm plans to make 12-15 investments in various consumer brands, with specific interests in sectors such as apparel, baby care, personal care, and veterinary care. They have already committed to four transactions under this new fund.
Yash Dholakia, a partner at Sauce VC, highlighted their strategy of backing both established promoters, such as those behind Hocco Ice Creams and Foodkraft, and newer founders, including those of Kreo and Perfora.
This fund’s closing highlights a growing interest in the direct-to-consumer segment from venture capitalists, with a continued focus on supporting innovative consumer brands.
