Incubate Fund hits first close of Fund I, targets $50M final close

Incubate Fund Asia Team
(L-R) Incubate Fund Asia Co-founder and Partner Masahiko Honma, Partner Rajeev Ranka, Founder and general partner Nao Murakami, Partner Dave Kwong

Incubate Fund Asia, a Japanese venture capital firm, specializing in seed-stage investment, has successfully closed its first close of their third fund which has a target corpus of $50 Million (around INR 416 crores). This milestone highlights the firm’s dedication to supporting startups and propelling them toward success.

Incubate Fund Asia has rebranded its India-focused entity as “Incubate Fund Asia” to expand its focus to support pre-seed and seed-stage startups across India and Southeast Asia.

The fund intends to use the proceeds to make early-stage investments and support startups that exhibit strong fundamental growth potential. It aims to curate a portfolio of around 20 startups with this third fund.

Interestingly, only 40% of the fund’s total investible corpus will be used to create the initial portfolio. The remaining 60% will be directed toward backing the most successful companies in the portfolio.

Since 2016, Incubate Fund Asia has played a crucial role in India’s dynamic startup investment landscape. It established a dedicated fund to invest in Indian startups.

Incubate Fund Asia has a global presence with offices in Tokyo, Singapore, Bangalore, Mumbai, São Paulo, and Mountain View. The firm has made notable investments in startups such as Captain Fresh, Yulu, ShopKirana, Plum, and more.

The fund has been instrumental in nurturing these startups, guiding them toward establishing leadership positions in the Indian market.

Nao Murakami, Founder and General Partner of Incubate Fund Asia, expressed his enthusiasm about the fund’s focused objectives. “Our mission is to empower startups and fuel innovation across Asia. With the target fund closure of $50 million, we will be ready to significantly enhance our support to emerging ventures, driving sustainable growth and innovation. Incubate Fund Asia remains deeply committed to its vision of nurturing innovation and catalyzing the growth of startups, ultimately contributing to the development of a thriving entrepreneurial ecosystem across Asia.”

Sumit Ghorawat, Co-Founder of ShopKirana, expressed how the Incubate Fund’s support has been pivotal for ShopKirana’s journey. He stated, “Incubate Fund Asia is everything that we look for in an investor and is definitely one of the top folks to have on your cap table and board. I feel proud to say ShopKirana was the first investment of Incubate Fund in India back in 2016, since then we have raised 4 rounds and they continue to back us in each of them. They have stuck with us during highs and lows, always pushing us to do better, giving us complete access to their rolodex and so much more. Over the years I have found the team at Incubate Fund to be one of the best to collaborate with and get perspectives from. Incubate Fund’s team will move mountains for you to help you on your startup journey.”

Incubate Fund Asia has provided invaluable support to 27 Indian companies, including standout ventures like ShopKirana and Captain Fresh. Their investments span various sectors, including B2B, B2C, Supply Chain, and consumer tech, operating in both Tier 1 and Tier 2 markets.

Typically, Incubate Fund Asia invests in the range of $500K to $1.5 million. In 2019, the firm launched a USD 18 million Fund II, demonstrating its commitment to nurturing and advancing promising startups.


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