Key Takeaways
- • YourNest Venture Capital has closed its Rs 400-crore Continuation Vehicle (YourNest Continuum Fund I), anchored by HDFC AMC Select FOF I, marking a significant development in India's domestic private capital markets for deeptech venture investing.
- • The fund holds a portfolio of six market-leading deeptech companies—Miko, Dozee, Thriwe, Opkey, Twid, and Exponent Energy—structured as a specialised secondaries vehicle designed to extend investor capital for 5–7 years as portfolio companies scale toward exit readiness.
- • YourNest's flagship first fund (2012-vintage, Rs 83.4 crore) achieved final closure with a 3.3x Distributions to Paid-In Capital (DPI) multiple, demonstrating strong historical returns and validating the firm's deeptech thesis.
- • HDFC AMC's participation as anchor investor replaces the historical relationship with the National Infrastructure and Investment Fund (NIIF), which anchored Fund III in 2021, signaling institutional capital's confidence in YourNest's portfolio and strategy.
- • The continuation vehicle was significantly oversubscribed with marquee family offices, high-net-worth individuals, and existing fund investors rolling over capital, with deployment expected at Rs 60–90 crore across the portfolio.
Summary
YourNest Venture Capital has achieved final close on its Rs 400-crore Continuation Vehicle, YourNest Continuum Fund I, anchored by HDFC AMC Select Fund of Funds I. The fund represents a structural innovation within India's venture capital ecosystem, specifically designed to address a persistent challenge: the mismatch between traditional fund lifecycles and the extended scaling timelines required by deeptech companies. By converting maturing fund assets into a secondaries vehicle with extended patient capital, YourNest is enabling its portfolio companies to remain invested for an additional 5–7 years without forced liquidity events.
The fund's portfolio comprises six established deeptech companies: Miko (robotics), Dozee (health tech), Thriwe (enterprise software), Opkey (software testing), Twid (IoT connectivity), and Exponent Energy (energy storage). The vehicle is expected to deploy Rs 60–90 crore across these holdings. This structure allows existing investors to achieve partial liquidity while enabling YourNest to maintain exposure to high-growth assets during their critical scaling phases, balancing the dual imperatives of investor returns and portfolio company maturation.
The anchor investor arrangement with HDFC AMC Select FOF I carries strategic significance for the Indian venture capital market. HDFC AMC's entry as the primary anchor establishes what YourNest describes as a "market-validated valuation structure," providing institutional-grade validation for the portfolio and setting a precedent for how continuation vehicles might be structured and valued in the domestic market. This contrasts with YourNest's previous institutional partnerships—notably NIIF's anchor role in Fund III during 2021—demonstrating evolving institutional appetite for deeptech exposure.
The continuation vehicle's oversubscription from marquee family offices and high-net-worth individuals, alongside substantial rollover commitments from existing investors, underscores confidence in both YourNest's portfolio performance and its investment thesis. The successful closure of the firm's 2012-vintage first fund with a final 3.3x DPI provides empirical support for this confidence, validating the deeptech early-stage model across a full fund lifecycle and a full market cycle.
The fund's portfolio comprises six established deeptech companies: Miko (robotics), Dozee (health tech), Thriwe (enterprise software), Opkey (software testing), Twid (IoT connectivity), and Exponent Energy (energy storage). The vehicle is expected to deploy Rs 60–90 crore across these holdings. This structure allows existing investors to achieve partial liquidity while enabling YourNest to maintain exposure to high-growth assets during their critical scaling phases, balancing the dual imperatives of investor returns and portfolio company maturation.
The anchor investor arrangement with HDFC AMC Select FOF I carries strategic significance for the Indian venture capital market. HDFC AMC's entry as the primary anchor establishes what YourNest describes as a "market-validated valuation structure," providing institutional-grade validation for the portfolio and setting a precedent for how continuation vehicles might be structured and valued in the domestic market. This contrasts with YourNest's previous institutional partnerships—notably NIIF's anchor role in Fund III during 2021—demonstrating evolving institutional appetite for deeptech exposure.
The continuation vehicle's oversubscription from marquee family offices and high-net-worth individuals, alongside substantial rollover commitments from existing investors, underscores confidence in both YourNest's portfolio performance and its investment thesis. The successful closure of the firm's 2012-vintage first fund with a final 3.3x DPI provides empirical support for this confidence, validating the deeptech early-stage model across a full fund lifecycle and a full market cycle.
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