**Z47 Investment Firm Pursues New Fund Amid Portfolio Adjustments**
Z47, an investment firm, is actively engaging with potential investors while considering partial exits from some of its portfolio companies to showcase interim liquidity. According to sources, the firm is in discussions for a new fund and is prioritizing the sale of stakes in its portfolio to illustrate financial flexibility following its recent split from a US partner.
In the current cautious fundraising environment, demonstrating distributed capital has become essential for private equity and venture capital firms looking to raise successor funds. Z47 is reportedly targeting secondary stake sales in companies like Ola, OfBusiness, Razorpay, and Dailyhunt, which could yield approximately $150–180 million, as highlighted in a previous Economic Times report. The firm is also in talks with other funds regarding potential portfolio sale transactions.
Z47 has a diverse portfolio that includes startups across consumer and enterprise technology sectors, such as OneCard, Captain Fresh, Country Delight, Jupiter, MoEngage, and Zupee. Historically, the firm has successfully exited investments in companies like Avail, CreditVidya, Five Star Business Finance, ITZ Cash, Muthoot Finance, and Ola Electric through a combination of strategic sales and IPOs.
Additionally, companies like OfBusiness and Razorpay are expected to explore public market opportunities soon, potentially providing exits for some of their existing investors. The new fund initiative comes over two years after Z47 closed its fourth fund, which raised over $550 million and focused on seed, early-stage, and early growth investments across various sectors in India.
Z47’s efforts reflect a broader revival in fundraising within the Indian venture capital landscape. Peak XV Partners, formerly known as Sequoia India & SEA, is also in preliminary discussions to raise a new India-Southeast Asia fund of up to $1.4 billion, marking its first initiative since separating from Sequoia Capital. This fund is anticipated to be finalized by the end of the current financial year. In the past 12–18 months, Peak XV has partially or fully exited several portfolio companies, including Porter, Rebel Foods, HealthKart, Finova, K12 Techno, and Cloudnine Hospitals, while also reducing stakes in listed and pre-IPO firms.
As the investment landscape evolves, several other Indian firms, including Kedaara, ChrysCapital, Stellaris Venture Partners, and Accel, are also navigating similar fundraising challenges and opportunities.
**FAQ**
**What is Z47’s current strategy for fundraising?**
Z47 is focusing on engaging potential investors for a new fund while exploring partial exits from its portfolio companies to demonstrate liquidity and financial flexibility.
