The micro VC firm known as “First Cheque” has made a successful partial exit from the direct-to-consumer (D2C) jewelry brand, “GIVA Jewellery,” with remarkable returns of 75X.
First Cheque, headquartered in Bengaluru, boasts investments in 125 startups, including notable names like Fashinza, WintWealth, Bellatrix Aerospace, and Leap Club.
In 2019, the firm made an undisclosed investment in Giva, becoming one of its earliest institutional backers; this lucrative exit has yielded a 75X return on the initial investment, with an impressive internal rate of return (IRR) of 194%, although specific financial details remain undisclosed and First Cheque’s current stake in Giva remains undisclosed as well.
Prateek Agarwal stated, “Giva is one of the first companies in our portfolio to deliver close to 100X returns, showcasing the potential for substantial returns that early-stage investors can achieve. The company has shown significant growth over the past few years, and we believe that our remaining stake in Giva will contribute significantly to our fund’s returns.”
This development accentuates the positive sentiment surrounding the new-age jewelry market, with venture capital investors closely monitoring the sector’s growth, driven by increased discretionary spending and a modern approach to jewelry. Giva competes with notable players like CaratLane, Bluestone (backed by Accel), and Melorra (backed by Symphony Asia Holdings).
First Cheque’s exit is part of Giva’s Series B fundraising round, which aimed to raise Rs 200 crore and was led by Premji Invest, with participation from existing investors, including Aditya Birla Ventures, Alteria Capital, and A91 Partners. India Quotient and Sixth Sense Ventures were early backers of the Bengaluru-based jewellery firm.
Founded in 2019 by Ishendra Agarwal, Nikita Prasad, and Sachin Shetty, Giva specializes in silver jewellery curated by designers worldwide. It has an offline presence in over 50 stores in India and plans to expand its omnichannel presence.
The company also aims to capitalize on increased consumer spending by enhancing its distribution network and expanding its product accessibility to a wider audience; so far it has raised more than $50 million in funding to date and achieved revenues of Rs 100 crore in FY22.
Notably, this exit marks First Cheque’s first significant success within its portfolio of startups. The sector-agnostic firm has made over 130 investments since its inception four years ago.
In the past year, First Cheque launched Fund II with approximately Rs 38 crore (~$5 million) from global investors, and the firm has diversified its investments across various sectors, including B2B marketplaces, consumer internet, fintech, and SaaS.
One of its portfolio companies, CapGrid, recently closed a $7 million funding round led by Nexus Venture Partners. First Cheque intends to invest in 18-20 more companies across various sectors in the next 8-9 months, with plans to allocate $100K as part of larger funding rounds ranging from $300K to $800K, as explained by Prateek Agarwal.
First Cheque
First Cheque is an early-stage venture capital firm based in Bengaluru that focuses on investing in startups at the seed stage. They typically provide initial funding to promising early-stage companies, often being one of the first institutional investors to support them.
The firm is known for being sector-agnostic, meaning they don’t restrict their investments to a specific industry or sector. They invest in a wide range of startups across various sectors, including technology, consumer products, fintech, and more.
The firm has made investments in numerous startups across different sectors, and its portfolio includes companies like Fashinza, WintWealth, Bellatrix Aerospace, Leap Club, and GIVA Jewellery, among others.
First Cheque had also launched “Fund II” with global investors’ funding, which was intended to support further investments in early-stage startups.
They typically invest in startups with innovative ideas, strong teams, and the potential for rapid growth. They aim to identify promising early-stage companies and provide them with the capital and support needed to scale their businesses.
Like many venture capital firms, First Cheque often leverages its network and connections to help portfolio companies succeed by providing them with valuable advice, mentorship, and introductions to potential partners or customers.
The Last Bit, First Cheque’s partial exit from GIVA Jewellery shows the immense potential and returns that can be realized in the early-stage investment arena.
With a 75X return and an IRR of 194%, this success story indicates the importance of strategic investing and the value that venture capital firms can bring to flourishing startups.
