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New fund · Financial Services

Cedar Hill Capital raises maiden fund with SIDBI commitment

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Cedar Hill Capital logo
Date
Company
Cedar Hill Capital
What it does
AI-first enterprise tech VC for financial services
Kind
New fund
Amount
Rs 250 crore
Stage
pre-seed
Founded
2024
Sector
Financial Services

What they do

Cedar Hill Capital is a venture capital firm investing in AI-first enterprise tech for financial services

What happened

SIDBI committed to its maiden fund via the Startup India Fund of Funds 2.0; other LPs include Muthoot Finance and IIFL, but the fund target is Rs 250 crore…

Why it matters

The fund has already made three investments, including in Sign3, an AI fraud intelligence platform

The details

  • SIDBI committed to Cedar Hill Capital's maiden fund via the Startup India Fund of Funds 2.0.
  • The fund has a target of Rs 250 crore (~$26.3 million), including a greenshoe option (an option to raise additional capital).
  • The exact amount of SIDBI's commitment was not disclosed.
  • Other limited partners (LPs, investors in the fund) include Muthoot Finance, Hinduja Leyland Finance, IIFL, and the Private Department of H.E. Sheikh Mohammed Bin Khalid Al Nahyan (Abu Dhabi).
  • Cedar Hill Capital was launched in 2024 by managing partner Sahil Anand.
  • The firm was formed through a collaboration between Cedar Consulting and IBS Intelligence.
  • The maiden fund has already made three investments, including in Sign3, an AI fraud intelligence platform.

The bigger picture

  • The Startup India Fund of Funds is a government initiative that invests in SEBI-registered Alternative Investment Funds (AIFs), which then deploy capital into early-stage startups.
  • Cedar Hill typically acts as the first institutional investor in pre-Series A and Series A rounds.
  • The firm plans a second fund for growth equity (Series A and B), targeting companies with Rs 20-500 crore revenue, with an expected size of Rs 300-350 crore or more.

About the business

  • Cedar Hill Capital is a venture capital firm that backs AI-first enterprise tech companies for the financial services sector.
  • Its investment areas include payments, lending, fraud detection, regtech (regulatory technology), and insuretech (insurance technology).
  • Portfolio companies sell their technology to banks, NBFCs (non-banking financial companies), insurers, and capital market institutions.
  • The firm's tagline is: 'backing founders building early-stage AI-first enterprise tech for financial services'.

What happens next

  • Cedar Hill plans a second fund for growth equity (Series A and B).
  • The second fund will target companies with Rs 20-500 crore revenue.
  • Its expected size is 1.5-2x the maiden fund, aiming for Rs 300-350 crore or more.
  • Cheque sizes for the second fund will start at Rs 10-12 crore.

The deal

Type
fund

Investors

  • SIDBI (lead) — Small Industries Development Bank of India, a government-owned financial institution.
  • Muthoot Finance (participated) — An Indian gold loan NBFC.
  • Hinduja Leyland Finance (participated) — A non-banking financial company focused on vehicle and equipment finance.
  • IIFL (participated) — An Indian financial services group.
  • Private Department H.E. Sheikh Mohammed Bin Khalid Al Nahyan (Abu Dhabi) (participated) — An investment entity from Abu Dhabi.

Founders

  • Sahil Anand, Managing Partner

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