Japanese Incubate Fund to raise $27 Mn to bet on early stage and Series A deals in India

Japan’s Incubate Fund was set up in India two and half years ago by Nao Murakami as Incubate Fund India. It set shop in Bengaluru to scout investment in potential startups. 

Since then, it has invested in companies like GamingMonk, Kobster, Nimble Wireless, Olly Credit and others.

It prefers early-stage deals as well as Series A deals and has recently backed StayAbode in its Series A round last month. In December 2018 it had also invested in ShopKirana’s $2 million Series A round, reported DealStreetAsia via Nikkei Asian Review.

Now, it has announced its plans to raise a $27 million worth fund by the end of this calendar year to double down its investments in the country.

However, this isn’t the only Japanese investor that is deepening its Indian investment play these days.

The investment arm of Japan’s top gaming and entertainment company Akatsuki Inc. named Akatsuki Entertainment Technology (AET) Fund also announced its entry into India last month.

Equipped with $50 million, the fund targets Series A investments in content, media, and entertainment startups. The company contemplates investing in five to six startups by 2019 end.

While Incubate Fund brings good news for startups across all the trending segments, AET Fund brings a ray of sunshine in the content and media space specifically where investments had gone down in the past year.

Over the past six-eight months, activities of Japanese investors (excluding SoftBank) has increased significantly. Pure play VCs such as Das Capital and strategic ones including Yamaha Motor, Axan Partners, Mitusi and Gunosy had invested in several companies.

Three months ago, Gumosy led $7 million Series B financing round in Instamojo, whereas Das Capital, Yamaha and Axan Partners were the anchor investors in Drivezy's $60 million Series B round.