Venture capital firm 3one4 Capital has launched a $15 million fund called the IIDEA Fund to support under-represented founders and sectors in India. The fund, backed solely by British International Investment (BII) as the limited partner, targets investments in energy transition, agriculture, health, deeptech, and manufacturing. 3one4 Capital aims to back 10-15 startups with initial ticket sizes of $500,000 each, reserving the remaining capital for follow-on rounds, according to inc42.com.
The entire corpus of $15 million has already been raised, with BII as the sole limited partner. 3one4 Capital has started deploying capital and closed nearly five investments under the fund to date. Partner Nruthya Madappa said the fund focuses on addressing funding gaps in sectors that have historically attracted limited capital, while backing women entrepreneurs and founders from tier II and III cities. The fund also targets businesses addressing developmental gaps in the Indian startup ecosystem, inc42.com reported.
This fund launch reflects growing investor interest in diversifying startup funding beyond metro cities and mainstream sectors. It complements 3one4 Capital’s broader strategy as the firm prepares to launch its fifth fund with a target corpus of $225 million. The IIDEA Fund’s focus on energy transition, agriculture, and deeptech aligns with India’s push toward sustainable development and innovation in critical sectors, according to inc42.com.
3one4 Capital plans to invest in around 10-15 startups through the IIDEA Fund, with initial investments of $500,000 each. The firm has already closed nearly five deals under this fund, demonstrating early momentum in backing under-represented founders and sectors, inc42.com stated.