YES Bank invests in Venture Catalyst Group Funds technology companies

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YES Bank has partnered with Venture Catalysts Group Funds to invest in some of its portfolio companies. Venture Catalyst Group Funds is an integrated incubator that provides funding, mentorship, and networking to startup founders, from the ideation phase through the growth stages of the startup journey.

“YES Bank has partnered with the entire group to invest in the individual platforms sponsored by the group – Beams Fintech Fund and 9 Unicorns Accelerator Fund,” said Sagar Aggarwal, co-founder of Beams Fintech Fund.

The private sector lender has currently invested in the funds and will work individually with specific businesses, Aggarwal told BusinessLine.

“We have already worked a lot together. There will be a significant number of companies that they will work closely with,” he said, adding that the bank has been working with them for almost a year and a half now.

Beams Fintech Fund invests in growth-stage companies operating in the fintech space, while 9 Unicorns Accelerator Fund is an independent investor in the early-stage sector.

Technology investments

YES Bank said the partnership aligns with the long-term growth strategy of strengthening its presence in India’s growing tech market.

“Collaborate with technology companies and help them imagine and experiment with various use cases such as agriculture, health, commerce, education, logistics, open banking, supply chain finance , payments, digital banking, among others, have been a key driver of YES Bank’s innovation strategy,” he said in a statement.

The portfolio companies will work closely with YES Bank on multiple fronts in areas including technology integration, corporate banking, service delivery, product co-creation and lending, according to Aggarwal.

The two funds together have more than 120 portfolio companies, of which around 30 are fintech companies.

Beams Fintech Fund

Beams Fintech Fund, a Class II AIF (Alternative Investment Fund) launched in early 2022 and aims to deploy $180m across 10-12 investments over the next three years in Series B and C corporate fundraising.

The partnership with YES Bank will enable the Beams Fintech Fund to create value for its portfolio companies, which will encourage more banks and NBFCs to invest in the Fund, Aggarwal said.

“Fintech as a space is a safe space in India with the first wave of payments and lending companies having received capital. Now in the net 5-7 years we see capital flowing between sectors,” he said.

He added that he expects fintech such as infrastructure, commerce and finance, vertical and industry payments, neo and digital banking, as well as niche wealth technology solutions and product companies to be key growth segments.

Stating that the Fund is exploring these categories with an investment horizon of 3-5 years, Aggarwal added that the aim is to partner with at least 5-7 banks and NBFCs each and 3-5 fintech companies. .

“10 to 12 institutions that we would like to bring as investors into the Fund and then partner with them through the companies,” he said.

Published on

August 18, 2022

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