The VC firm stated that Hades Financial Private Capital Group was the “second large” institution investor to join the fintech fund as a Limited Partner

The fund closed its first round in March of this year, with participation from two institutional investors and family offices.

The fund will invest in 15 fintech startups at an early stage.

The first $30 million fund of Cedar-IBSi Capital, a venture capital firm focused on fintech, has received “a sizeable commitment” from the Riyadh based asset management company Hades Financial Private Capital Group.

The VC firm stated that HFPCG was the “second large” institution to join the fintech fund as a partner. According to the agreement, both parties will use each other’s network and expertise to “drive value creation “.

The fund was launched by IBS Intelligence and Cedar, a management consultancy. The Fund closed its first close on March of this year, with participation from family offices, two institutional investors and others.

“We’re excited to welcome Hades as a respected institutional investor to the Cedar-IBSi Capital investor base. We look forward to achieving our common goal of unlocking the Indian B2B FinTech/BankTech Journey …,”, said Cedar-IBSi Capital Founder and Managing Director Sahil Anand.

HFPCG co CEO Mohammed Abrar Asif commented on the development: “We are delighted to partner with Cedar IBSi Capital and their mission of fostering innovative solutions in the fintech and banktech sectors.” This investment is in line with our strategy of backing promising early-stage businesses that are poised disrupt traditional financial services, and bring transformative solutions on the market “.

Cedar-IBSi Capital announced that it was about to close its initial investment and is currently considering a second one. The VC firm will distribute cheques ranging from INR 4 Cr. to INR 10 cr. and invest in 15 fintech startups in their early stages.

The fund’s focus will be on entrepreneurs who are building fintech startups that cater to banks, enterprises, and other use cases, such as insurance, NBFCs, and other financial service players.

The development comes as several VC firms and private equity firms are accumulating a large amount of dry powder for investing in Indian startups. Despite the ongoing funding winter, 2023 saw the launch of 64 funds with a corpus of $5.6 Bn, including venture capital funds, micro-funds, and corporate VC funds.

This momentum has continued into 2024. This month, the asset management arm of fintech startup Neo group, Neo Asset Management, closed its maiden fund for special credit opportunities at INR 2,575 crore. In May, consumer VC Fund RPSG Capital Ventures closed its latest Fund II for INR 550 crore.