DSG Consumer Partners closes half of $60 Mn worth third fund

Half a month after the announcement and 3 months after the actual event of making a complete exit from OYO Rooms, Deepak Shahdadpuri led DSG Consumer Group (DSGCP)  has announced its third fund.

Named DSGCP-III, the fund has a target corpus of $60 million, out of which half the amount has already been closed in the first tranche.

Belgium based Verlinvest, the family office of the founding families of Anheuser-Busch InBev and Kewalram Chanrai Group, a Nigeria based conglomerate have invested $30 million in the fund as anchor investors.

While the fund is in talks with existing investors to contribute the rest of the amount, it is looking to onboard 2-3 new investors as well. Some of the existing investors of the VC’s previous funds include private equity firm Everstone Capital and its cofounder Sameer Sain; asset management firm ACPI Investment’s co-founder Alok Oberoi; and Saama Capital founders Suresh Shanmugham and Ash Lilani.

The fund will onboard investors from family offices and institutions across USA, Singapore, and Europe, reports ET.

This $60 million third fund is a 4.8X jump from the $12.5 million first fund and a minor $10 million increase from $50 million DSGCP-II. The VC had recently stopped investing in new companies from the Verlinvest backed second fund, and instead was only focussing on follow on rounds.

The first fund in itself had seen partial and complete exits that earned the VC around $60 million out of which $46 million was distributed.

Till now the firm has invested in over 40 portfolio companies, primarily in seed to Series A funding rounds. With the third fund, the VC is looking to invest in about 20 enterprises with ticket sizes ranging from $500k to $2 million.

The VC has additionally announced the launch of second buildout or growth fund, that is in the pipeline along with the third flagship fund. This will only focus on about 10 of the top existing portfolio companies from DSGCP-I & II and nothing outside of it.

Some of these companies include Epigamia, RAW Pressery, Chai Point, and MSwipe Technologies among others.

OYO Rooms could also have been a part of the top companies, but the VC made a complete exit from the startup past December with around either $6.5 million or $23 million.