Investment firm CoCreate Ventures has set up a Rs 15 crore ($2.2 million) fund to help startups pivot or turn around.
The firm, co-founded by TeliBrahma founder Suresh Narasimha and Ojas Ventures founder and partner Pavan Krishnamurthy, raised the capital from a clutch of high net-worth individuals (HNIs), the company said in a statement.
CoCreate has made its first investment in library chain JustBooks Solutions Pvt. Ltd, a newly created company. Previously, JustBooks was part of Bengaluru-based services firm Strata Retail & Technology Services Pvt Ltd. The newly formed firm will use the funds raised to acquire the JustBooks brand and business from its former parent company.
"With over a million books in our omni channel network and immense consumer loyalty, we are now looking to scale in terms of new channels and products to enhance this experience," said Sridhar Rajaram, chief executive of JustBooks.
Prior to this deal, Strata was running the omni-channel library service in 13 cities across India.
CoCreate typically invests Rs 1 crore and focusses on companies that are undergoing or need transitions such as a pivot to capture the market. It is looking for opportunities around health, education, fintech, and retail.
The past few months have seen a number of accelerators and firms launch startup-focussed funds.
Earlier this month, US-based Microsoft Ventures, the venture capital arm of software giant Microsoft, formed a new fund for investments in startups focussed on artificial intelligence.
In September, sports management and marketing company India on Track (IOT) was launching a fund to make early-stage investments in sports startups. At that time, VCCircle had reported that the company was still in the process of obtaining regulatory approvals for the fund.
In another instance, the founders of healthcare private equity firm Quadria Capital have floated a Rs 65 crore ($9.75 million) venture capital fund called Healthquad to make early-stage investments in healthcare.