Gemba Capital, a Bengaluru-based SEBI-registered micro venture capital firm, has launched its second fund with a target of Rs 250 crore, including a Rs 50 crore green shoe option. This new fund is designed to support early-stage "platform-first" businesses—those that build competitive advantages through ecosystem development, network effects, or value-added layers.
Fund-II aims to invest in around 30 early-stage startups across fintech, consumer tech, and B2B platforms. Gemba Capital plans to allocate an initial investment of Rs 5 crore per startup, reserving 30% of the fund for follow-on investments.
Established in 2018, Gemba Capital focuses on seed and pre-seed stage investments. Its first fund, launched in 2022 with a corpus of Rs 70 crore, provided an average cheque size of Rs 2 crore and was backed by family offices, founders, and CXOs. To date, Gemba Capital has invested in over 50 startups, including Plum, Grip Invest, Wint Wealth, Strata, Navadhan, Zuper, Showroom, Smartstaff, ClickPost, and LightFury.
Known for its high-conviction, thesis-led investment strategy, Gemba Capital typically makes fewer than 10 deals per year. The firm employs a proprietary 'Founder Market Fit Framework' to identify and support promising teams. This approach, along with its collaborative investment style, has helped Gemba stand out in the market.
Adith Podhar, General Partner at Gemba Capital, mentioned that the firm has transitioned from investing its own capital to running an angel syndicate and raising Fund-I. With Fund-II, Gemba aims to attract institutional LPs to fill the gap in early-stage startup funding. Govind Lohia, Principal at Gemba Capital, emphasized the significant value the firm adds to its portfolio companies, including customer introductions, fundraising, and strategic planning.
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