'AI is reshaping how brands are built': Fireside Ventures on closing its Rs 2,265 cr Fund IV

Fireside Ventures has closed its fourth fund with a corpus of Rs 2,265 crore ($253 million), raised through its GIFT City feeder fund and India master fund. The firm will continue to double down on building the next generation of iconic consumer brands.

Speaking to Business Today, Kanwaljit Singh, Founder & Managing Partner, Fireside Ventures, said, “With Fund IV, our focus is to continue investing in the consumer space as we see the opportunity further deepening across consumer cohorts, channels, sectors, and India 1/2/3. Fund IV gives us the opportunity to continue doing what we value deeply — working with founders who are building India’s next generation of iconic consumer brands.”

Fund IV has drawn commitments from a diversified mix of Indian and global investors, including US university endowments; sovereign wealth funds such as Abu Dhabi Investment Authority (ADIA) and Investment Corporation of Dubai (ICD); and prominent financial institutions like HarbourVest, Waterfield, and Fidelity International. Consumer-focused corporates and family offices — including Sharrp Ventures, Mirabilis, and Emami Limited — along with several founders, have also participated. The blend of long-term partners and new investors underscores the growing confidence in Fireside’s strategy and consumer-focused investment platform.

With deeptech and AI attracting significant investor attention, Fireside is refining its investment approach while staying true to its consumer thesis. According to Singh, AI is reshaping the consumer brand landscape by driving efficiency, enabling personalisation, and giving rise to new disruptive models.

“Our focus areas have broadened across consumer cohorts, with stronger emphasis on Gen Z and Gen Alpha. In terms of sectors, we are doubling down on health and wellness while covering the full spectrum of CPG businesses. We’re also going deeper into smaller-town India, which is showing high growth potential,” Singh said.

As India's consumption story expands, so has Fireside’s investment lens. The firm now backs brands across geographies and channels, investing from the first institutional cheque through later rounds as companies scale their teams, markets, and operations.

Fireside Fund I ranks first out of 11 Category I AIFs (vintage year 2018) in CRISIL’s AIF Benchmarks as of September 30, 2024, based on INR IRR and DPI. Across its portfolio, Fireside-backed brands collectively generate over $1.6 billion in revenue and exceed $7 billion in market value, with several scaling beyond Rs 500 crore. Its portfolio includes Honasa Consumer (Mamaearth, The Derma Co), boAt, The Sleep Company, Frubon, The Good Bug, Slurrp Farm, Sweet Karam Coffee, Inito, Pilgrim, Wellbeing, Moxie, NewMe, and Traya.

Since its inception in 2017, Fireside has been the first institutional investor in more than 74% of its portfolio companies and today backs over 60 consumer brands. With the close of Fund IV, Fireside’s total assets under management now stand at ₹5,300 crore ($650 million).