Basis Vectors, a private equity and venture capital firm has announced a $50 million worth technology and private equity fund focused on SaaS based startups. The company has its headquarters in New York and is also operational in India, Silicon Valley and Ukraine.
The aim of the brand-new firm is to invest in B2B focused software companies. The lead investor in the fund will be Cianna Capital, one of the partners of Basis Vectors. UHNW family offices of Rajesh Jain, founder of Netcore, and Tracxn’s co-founder Abhishek Goel are among other key investors in the portfolio.
With the aim to accelerate growth and invest in the lower mid-market vertical SaaS firms and help them create a sustained and long-term business, Basis Vectors was started in 2019 by Ambarish Gupta and Upmanyu Misra. Before Basis Vectors, Gupta founded Kowlarity Communication and headed it for 9 years.
The investment claims to have contributed in 15 companies so far including e-commerce enabler EasyEcom, full-stack cognitive cloud platform Relecura, crypto lending startup Celsius, and online background screening company- HelloVerify.
The launch of the fund by Basis Vectors is a positive sign for the SaaS focused firms in the country. Even though the funding in consumer internet companies is expected to witness an increase, investors also calculated to divert their attention to software product companies.
The last year has been good for SaaS based companies as they have managed to crack significant deals. Icertis raised about $115 million in June 2019 making it a Unicorn. Other companies like Apponomic, Carestack, Urbanpiper, and Greytip have also raised over $60 million together in 2019.
Bain & Company’s India Private report also stated that Indian SaaS based industry is expected to grow by 50% yearly and have a valuation over $20 billion by 2022 as compared to about $6 billion in 2019.