FinTech VC Firm Cedar CapitalStart with $30 Million Fund Focused on Banks

Cedar Capital
Preeti Bali / 2:32 pm / March 19, 2024

Cedar Capital, a venture capital firm specializing in financial technology, has successfully closed the first round of its early-stage investment fund, securing a total of Rs 240 crore (approximately $30 million). Founded by Sahil Anand, the firm leverages the combined expertise of global consulting group Cedar and FinTech research leader IBS Intelligence.

This initial round, structured using the traditional limited partner (LP) and general partner (GP) model, attracted commitments ranging from Rs 50 crore to Rs 75 crore ($6 million to $9 million) each. Notably, the fund garnered support from prominent family offices and institutional investors in India and the Middle East, including a major Indian financial services institution.

With Cedar Capital Fund, Sahil Anand pioneered investments in BankTech and B2B FinTech.

Excited about the fund’s progress, Sahil Anand, Cedar Capital’s Founder and Managing Partner, highlighted its unique focus on BankTech and Business-to-Business FinTech (B2B FinTech) startups. These solutions are designed to bolster the core technology infrastructure of banks, insurers, non-banking financial companies (NBFCs), and other financial service providers.

Anand acknowledged the challenges in the venture capital landscape but emphasized that the fund’s specialized focus and the combined 60+ years of experience in research and consulting from Cedar and IBS Intelligence set them apart, attracting significant investor interest.

Investing Rs 4-10 Crore in Early-Stage BankTech and Enterprise FinTech Ventures, Cedar Capital Fund is driving innovation.

The fund plans to invest between Rs 4 crore and Rs 10 crore ($500,000 to $1 million) in each of its target 15 early-stage BankTech startups during their seed and Series A funding rounds. They aim to support seasoned entrepreneurs developing innovative solutions and technologies within the BankTech sector, along with Enterprise FinTechs tackling challenges faced by financial institutions.

“Our deep involvement in the BankTech and FinTech ecosystem – through management consulting for leading bank CTOs and institutions via Cedar, market intelligence and advisory services for prominent BankTechs and FinTechs via IBS Intelligence, and fostering innovation through the Cedar-IBSi FinTech Lab – positions us perfectly to understand and support these ventures,” explained Anand.

Cedar Capital goes beyond simply providing capital. By leveraging their comprehensive platform, they offer a unique value proposition – a team with an operator mindset and the capability to drive significant growth across various aspects of their portfolio companies’ journeys.

In addition to Sahil Anand, the firm has bolstered its team with seasoned professionals: Subit Saurav, co-leading investments (formerly with Aavishkar Capital), and Sunny Desa, overseeing Investor Relations and FinTech investments (previously with YES Bank’s Financial Investor Strategy team). Furthermore, the core team is supported by four Operating Partners with over 20 years of experience each in BankTech and providing advisory services to CTOs.

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