Carpediem Capital has received a commitment for Rs 450 crore from institutional investors for its second fund, which it is aiming for closure in May, even as venture capital funding slowed in recent times due to economic uncertainties.

The commitment it received so far is about 65-75% of the initial target of Rs 600-700 crore. There will be some more investment tie-ups before the closure in May, Carpediem Capital founder and managing director Abhishek Shaman told ET.

The home-grown private equity player has so far invested in two companies — Formax and Biryani Blues — from the second fund, while Rs 380 crore has remained undeployed. It is planning two to three new investments in 2023 in the FMCG, food and retail space.

It has fully invested the first fund, Carpediem Capital Partners Fund I with a corpus of Rs 204 crore. It invested in seven entities from the first fund between 2016 and 2020.

It exited Yaantra in February last year to the Walmart Group, generating a fourfold return on the invested capital.

Carpediem is striking a threefold return on invested capital as of date despite small and medium companies getting impacted due to the economic uncertainty caused by Covid-19 and the Russia-Ukraine war, people in the know said.

Its investments are centred on two broad themes: companies that are creating consumer brands or are providing organised services that have been traditionally unorganised and fragmented.Its portfolio companies include Sindhuja Microcredit, Adinath Agro Processed Foods, medical devices distributor ColMed, interior designing service provider Flipspaces Technology Labs, value retail chain 1-India Family Mart and fashion jewellery company Sukkhi Online.

More divestments are in the pipeline as the investments from the first fund are maturing, Sharman said. The entire divestment process may be over by 2025.

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