IIFL WM makes strategic investment in tech VC fund

India’s IIFL Wealth Management has made a strategic investment of an undisclosed amount into CerraCap Ventures Fund II from CerraCap Ventures, an early stage technology venture capital firm with a focus on emerging technologies.

“This [investment] enables IIFL Wealth to gain a strong foothold into the [tech] ecosystem and also access to the best minds and their ideas from leading innovation hubs,” Umang Papneja, senior managing partner at IIFL Wealth told Asian Private Banker.

Focusing on early-stage investments in tech companies — particularly in the emerging areas of cybersecurity, analytics, internet of things, and healthcare IT — the fund works on a “sales and scale” model which looks to strengthen the sales pipeline through access to potential global clients while also engaging in partnerships which support scale.

“The highly experienced team and the distinguished advisory board help the fund get access to centres of innovation globally and offer significant help and a possible monetisation path to the portfolio companies,” Papneja added.

According to Karan Bhagat, managing director and CEO of IIFL Wealth, forging a relationship with CerraCap Ventures gives the wealth manager access to investment opportunities in the best technology businesses on the global front.

“We are honoured to have IIFL Wealth as part of our distinguished list of limited partners and look forward to a strategic relationship with them,” said Saurabh Ranjan, managing partner at CerraCap Ventures, which is headquartered in Orange County.

The investment is in alignment with IIFL’s history of pursuing inorganic growth to bolster its technological knowhow and capabilities. Last September, it announced its acquisition of Bengaluru-based Altiore Advisors, a data analytics fintech firm.

According to Asian Private Banker‘s India 2018 AUM League Table, IIFL Wealth & Asset Management is the third largest onshore wealth manager in India, with US$21.28 billion in assets under management as at end-2018.

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Asian Private Banker