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Indian insurance companies can now invest in FoF

After the unicorn parade we saw this week, there’s more reason to cheer for Indian startups, thanks to the IRDA’s move to allow Indian insurance companies to invest in Funds of Funds

The latest IRDA move will mean greater inflow of domestic capital into the startup ecosystem and comes close on the heels of the recent decision of the government to allow private retirement funds to park certain percentage of their capital in Alternate Investment Funds (AIFs).


Indeed, experts believe the inflection point for any startup ecosystem to be when domestic institutional capital is allowed to start investing into the local ecosystem. 

“This move by the IRDA and the move by PFRDA last month shows the government’s intent to accelerate institutional rupee funding to startups, which will help in economic growth and job creation,” said Siddarth Pai, Founding Partner and CFO at 3one4 Capital, and Co-Chair at Regulatory Affairs Committee.

Siddarth Pai

This announcement to boost domestic capital in India comes after IvyCap Ventures recently made a 22X return of Rs 330 crore after partially exiting beauty startup Purplle, marking a turning point for institutional investors in India.

The Interview

Rolling out new processes can disrupt the functioning of large businesses, especially multinational companies. Such changes may impact parts of the businesses or impede the functioning of the business across geographies. Puma India’s Amit Prabhu, AWS’ Sachin Punyani, and ClearTax’s Rohit Razdan talk about how businesses can build an e-Invoicing strategy.

Editor’s Pick: The Turning Point

Mohan K had always wanted to start his own company. While developing a payment gateway at Foloosi, he decided to bridge the gap of last-mile fintech problems in India and launched IppoPay in June 2020 to cater to small businesses in Tamil Nadu. The startup claims to have garnered Rs 800 crore transaction within less than a year of its launch. Read more.


Startup Spotlight

Providing people in rural areas access to affordable healthcare

While studying at BIT Mesra, Patna, Suman Sourav, Rituraj Swamy, Mohammad Amanullah, and Prince Kumar realised that a number of people from rural areas had been asking them to book medical appointments in Patna. So, they started Medishala, an online healthtech platform that aims to bring the best of doctors and medical experts to patients in the hinterlands. Read more.

medishala snapshot

News & Updates

Before you go, stay inspired with… 

3one4 Capital - Siddarth Pai

Siddarth M Pai, Founding Partner, 3one4 Capital

“The government has provided considerable support to many institutions in the country which has enabled them to come out with their incubators.”

Siddarth Pai, Managing Partner, 3one4 Capital

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