By Ajay Rag
Copyright indiatimes
Japanese venture capital firm Unleash Capital Partners has closed its maiden fund at Rs 300 crore to invest in fintech startups.The fund, backed by about 35 Japanese limited partners (LPs), is co-managed by founder Natsuki Sugai and Japanese financial services company Gojo & Company.It has already deployed capital in seven Indian startups and plans to back 12-15 companies in total, with cheque sizes ranging from Rs 5 crore to Rs 18 crore.“We are a fintech-focused investor and unlike sector agnostic investors, we are covering any possible opportunities in the fintech space. We are selecting entrepreneurs whose intention is very clearly to comply with RBI regulations and is very knowledgeable about the regulations and intention behind it,” founder and managing partner Sugai told ET.Unleash Capital invests in seed and Series A stage companies, targeting startups that provide financial services directly as well as those building technology and infrastructure for the broader ecosystem.Alongside capital, the fund will connect portfolio firms with Japanese investors for equity, debt, business collaborations and potential mergers and acquisitions opportunities.It adds to the expanding presence of Japanese capital in India, following large investors such as SoftBank and MUFG that already have significant exposure to the market.Companies backed by Unleash Capital include Pelocal, which offers an artificial intelligence (AI)-led payments orchestration platform that integrates with WhatsApp and other messaging apps; digital lending startup Zype; and Neurofin AI, an enterprise platform for the banking, financial services and insurance sector.Sugai added that Japanese investors are willing to directly invest in some of its portfolio companies in the future, or acquire those companies, leveraging their network.“What’s often missing for Japanese LPs is not just financial statements but access to broader insights like market information, founder references, regulatory updates and specific regional context. They expect financial returns, but at the same time, they also see us as a strategic partner for their business expansion in India,” he said.
