Cedar-IBSi Capital's Strategic Leap into Banking Tech Startups

Cedar-IBSi Capital plans to invest in 10-15 banking and insurance tech startups to strengthen financial innovation. With a budget of Rs 4-10 crore, the fund aims to support high-performing companies. The firm seeks to bridge the gap in outdated financial infrastructures through innovative early-stage investments.

Cedar-IBSi Capital announced its intention to invest in 10-15 startups within the banking and insurance technology sectors, aiming to expand its national footprint. The fund intends to allocate a budget in the range of Rs 4-10 crore to financially bolster 8 to 10 high-performing companies.

With an early-stage fund of Rs 240 crore launched in 2023, the firm has already secured commitments of Rs 50-75 crore. The focus will be on startups offering unique and innovative tech solutions to enhance financial institutions' efficiency. The firm has made its first investment in Cogniquest, a tech company specializing in intelligent document processing, and anticipates announcing its second investment soon, according to Sahil Anand, Founder and Managing Partner at Cedar-IBSi Capital.

Anand noted that while consumer-facing disruption has advanced over the past 5-8 years, core banking and insurance infrastructures remain outdated. Cedar-IBSi seeks to address this gap by investing in early-stage startups focusing on BFSI Technology and enterprise fintechs.

(With inputs from agencies.)