In an exciting move for the Indian venture capital landscape, Cornerstone Ventures, a Mumbai-based early-stage VC firm, has raised $40 million in the first close of its second fund, targeting a total of $200 million. With a sharp focus on investing in B2B SaaS startups, Cornerstone Ventures is making its mark as a key player in the rapidly growing tech ecosystem, with a clear strategy to scale companies in financial services, healthcare, retail, consumer goods, e-commerce, and more.
In this article, we’ll explore how Cornerstone Ventures is positioning itself for growth, the sectors it’s betting on, and the strategic moves that are fueling its rise in the Indian VC scene.
What is Cornerstone Ventures?
Cornerstone Ventures is an early-stage venture capital firm founded in 2018 by Abhishek Prasad and Rajiv Vaishnav. The firm has been steadily building a reputation for backing high-potential software-as-a-service (SaaS) startups that offer innovative B2B technology platforms and marketplaces. These are the types of companies that, according to Cornerstone, will drive India’s next wave of technological growth.
In just a few years, Cornerstone Ventures has been successful in deploying capital from its first fund, which included investments in 21 startups, including big names like NRT, Blubirch, Mystifly, and Credilo. The firm has also seen some successful exits, with investments in companies like Wigzo and Intelligence Node.
Now, with the first close of its second fund, Cornerstone Ventures is stepping up its game, aiming to raise $200 million in total and make significant investments in the future of Indian SaaS and B2B tech.
Why Cornerstone Ventures is Betting on SaaS
One of the standout features of Cornerstone Ventures is its exclusive focus on SaaS and B2B technology platforms. This strategy aligns perfectly with the growth of India’s digital economy, which has seen rapid expansion in sectors like e-commerce, fintech, healthcare, and logistics.
SaaS businesses, which provide software solutions on a subscription basis, have exploded in recent years due to their scalability, cost-effectiveness, and ease of integration into global business models. With the digital transformation of Indian businesses, SaaS startups are becoming key players in driving automation, data analytics, and cloud computing solutions across various industries.
Cornerstone Ventures’ bet on SaaS businesses is strategic, given India’s digital-first mindset, with an increasing number of companies turning to software solutions to improve their operations and customer experiences.
What Cornerstone Ventures Looks for in Startups
As Cornerstone Ventures moves into its second fund, the firm is looking for startups that are in the early-to-growth stage but have a clear growth trajectory and the potential for scalable solutions. The sectors the firm is targeting include:
- Financial Services and Insurance: With fintech taking off in India, the demand for innovative solutions in lending, insurance, and payments is huge.
- Retail and Consumer Goods: The online retail and consumer goods space is booming, and B2B SaaS solutions are needed to power logistics, marketing, and sales.
- Healthcare Products and Services: Healthtech is another fast-growing area where SaaS can provide solutions for hospitals, diagnostics, and even pharmaceutical supply chains.
- Distribution and Supply Chain: As supply chains become increasingly complex, there is massive potential for SaaS solutions to streamline operations and increase efficiency.
Cornerstone’s approach is to invest in startups that use technology to address complex challenges within these sectors, while also focusing on startups that can scale up rapidly across domestic and international markets.
The Fund’s Investment Strategy: Between $5 Million and $15 Million
With the goal of raising $200 million in total for this fund, Cornerstone Ventures plans to write checks between $5 million and $15 million per startup. These investments will provide both strategic and financial support to help portfolio companies navigate the complexities of growth.
The capital will allow Cornerstone to partner with its startups for the long term, providing support as they expand, scale, and refine their product offerings. Beyond just capital, Cornerstone offers startups access to its extensive network, which includes seasoned entrepreneurs, successful founders, and corporate leaders, all of whom can help accelerate growth.
The Role of Suresh Pareek: New General Partner
In a big move to bolster its capabilities, Cornerstone Ventures has brought in Suresh Pareek as its new General Partner. Pareek, a seasoned entrepreneur and investor, has founded Ideal Cures, a pharmaceutical excipients manufacturer, and has an extensive background in investing in startups through his family office, Sukvi Ventures.
His entrepreneurial experience and extensive investor network are seen as key assets that will help Cornerstone expand its influence and connect with top-notch startups and partners. As Abhishek Prasad, Managing Partner at Cornerstone Ventures, stated, “Suresh Pareek’s addition to the team has significantly accelerated our first close and will be invaluable in navigating the next phase of growth for our portfolio companies.”
Cornerstone Ventures’ Track Record and Future Outlook
Since its inception, Cornerstone Ventures has already made a name for itself by committing to early-stage SaaS startups that have the potential for long-term growth. With a portfolio of 21 startups, the firm’s first fund has already seen success in exiting investments such as Wigzo and Intelligence Node. These successes validate Cornerstone’s investment approach and its ability to identify winners in the SaaS and B2B tech space.
Looking forward, Cornerstone plans to use its second fund to make 15 to 20 new investments, targeting startups that can scale rapidly and have strong potential to disrupt industries through technology-driven solutions. The firm’s focus on SaaS, alongside its strategic partnerships with experienced entrepreneurs like Suresh Pareek, makes it a strong contender in shaping the future of India’s tech ecosystem.
Why This $200 Million Fund Matters for Indian Startups
Cornerstone Ventures’ decision to raise $200 million for its second fund is a significant moment for India’s venture capital scene. With large-ticket investments ranging from $5 million to $15 million, the firm is in a unique position to scale up companies that are on the cutting edge of technology.
As the Indian SaaS market continues to grow, Cornerstone’s fund will likely play a major role in identifying and nurturing the next generation of tech unicorns. From fintech to healthtech, the fund will back companies that are not only creating cutting-edge products but are also driving digital transformation across industries.
With more capital at its disposal, Cornerstone Ventures is setting itself up as a pivotal player in India’s startup ecosystem, helping businesses scale and expand both locally and globally.
Conclusion
Cornerstone Ventures is on a mission to support India’s top SaaS startups, helping them grow and thrive in an increasingly digital world. With the first close of its $200 million fund, the firm is ready to fuel the next wave of growth for B2B tech companies. By focusing on high-growth sectors like fintech, e-commerce, healthcare, and supply chain, Cornerstone is betting on the future of tech-driven innovation in India.
The addition of Suresh Pareek to the team further strengthens the firm’s ability to identify high-potential startups and support them with the necessary resources for long-term success. As India continues to emerge as a global tech hub, Cornerstone Ventures is positioning itself as a key player in the growth of the country’s digital economy.
