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https://www.vccircle.com/sixth-sense-ventures-nears-first-close-of-second-fund

Sixth Sense Ventures is soon going to mark the first close of its second domestic fund, the consumer-focused venture capital firm’s founder and CEO told VCCircle.

According to Nikhil Vora, the second fund with a target corpus of Rs 350 crore ($54 million) will mark the first close by the month-end. “Nearly every investor who participated in our last fund are coming back for this vehicle. We will mark the first close anywhere between Rs 150-175 crore by February-end.”

Vora, however, hinted that talks with a few foreign investors are also on and the fund size may increase if they come on board. “There are some global consumer companies that we are in touch with. If they participate, it will be outside of the Rs 350 crore.”

The VC firm, which is planning to invest in 12-15 companies from the new fund, will maintain its consumer-focused theme.

Fund-I

Sixth Sense had a target corpus of Rs 125 crore for its first fund and had backed 10 companies, including Gaming arcade operator Smaaash Entertainment Pvt. Ltd, Hindustan Foods Ltd, PepsiCo Inc’s Kurkure snack brand, JHS Svendgaard Laboratories Pvt Ltd and hyperlocal logistics service provider Grab.

Nearly 50 investors, including family offices and high net-worth individuals, besides Small Industries Development Bank of India had come in as limited partners to the first fund. Vora said that the fund has started returning capital to its investors.

“Sixth Sense has become the first fund, ever, in the country to return capital back to its lead investors within one to one-and-half years from the date of the closure of a seven-year fund,” he said, adding that they have already returned about Rs 25 crore to SIDBI.

“We’ve have only exited from JHS, but the exit route looks brighter for several companies within the next two years.”

Vora’s investments

In his personal capacity, Vora has invested in One97 Communications, the parent of mobile wallet and e-commerce firm Paytm; Kangaroo Kids Education Ltd, which runs Kangaroo Kids Preschool and Billabong High International School; and Vini Cosmetics, a consumer goods company that had also raised funding from Sequoia Capital.

He has also invested in Avigo Capital-backed sports-focused digital display solutions firm Technology Frontiers, and MRO AirWorks, which counts NEA and GTI Capital as its investors.

Earlier this year, he had sold his stake in Paytm to Chinese e-commerce giant Alibaba, reaping gains of almost 75 times.