Consumer-focused investor Sauce VC, known for backing Mokobara, The Whole Truth, and Supertails, embarks on its third fund with a vision to support early-stage consumer brands.
Sauce VC, an investor in consumer-centric ventures, has announced the launch of its third fund with a target to raise Rs 250 crore. Founder and Managing Partner, Manu Chandra, revealed the firm’s ambitious plans to ET, highlighting its commitment to nurturing emerging consumer brands.
The New Delhi-based investment firm recently obtained clearance from the Securities and Exchange Board of India (Sebi) for its new fund. Chandra outlined the objective of the fund, stating its aim to support 15-16 consumer brands in their nascent stages, fueling their growth trajectory.
Sauce VC’s latest endeavor coincides with the burgeoning interest of risk capital investors in the direct-to-consumer (D2C) space, a trend previously reported by ET. The fund is poised to attract capital primarily from domestic limited partners, including venture backers and existing investors such as family offices and corporate entities with a consumer focus.
This marks a strategic shift for Sauce VC, which had previously adopted the strategy of raising continuity funds. Chandra revealed that the firm will now channel larger investments directly from the main fund, aligning with its vision for consistency in investment strategy across stages, sectors, and fund sizes.
“With this new fund, we aim to maintain consistency in terms of stage, sector, and size,” Chandra affirmed. “Sauce now boasts a robust ecosystem and proven playbook to shepherd brands from conceptualization to achieving a scale of Rs 150-200 crore consistently.”
The launch of Fund-III signifies an evolution in investment approach for Sauce VC, with plans to increase investment cheques to the range of Rs 3.5-4 crore, compared to previous deals ranging from Rs 2-2.5 crore. Chandra attributed this shift to the evolving landscape of consumer brands, accelerated by advancements in last-mile infrastructure and technology solutions.
“Ticket size has undoubtedly increased,” Chandra remarked. “The emergence of quick commerce and the maturation of infrastructure and technology stacks have expedited the growth trajectory for consumer brands, prompting larger investments at earlier stages.”
Sauce VC’s track record of backing innovative consumer brands such as Mokobara, The Whole Truth, and Supertails underscores its commitment to driving innovation and fostering entrepreneurship in India’s consumer landscape. With the launch of its third fund, the firm is poised to play a pivotal role in shaping the future of the consumer industry, supporting visionary founders and transformative brands from ideation to scale.
