UNLEASH Capital Partners said that it has hit the final close of its first fund, which is focused on the financial sector, at Rs Rs 300 crore.

The fund was initially targeting to raise Rs 250 crore.

The fund witnessed backing from around 35 Japanese Limited Partners (LPs), or investors, underlining continued interest from Japan in India's startup ecosystem ranging from the investment giant Softbank to other venture capital firms like Beenext and Incubate Fund with Japanese LPs.

"This fund represents a powerful bridge, channeling Japanese capital and expertise into India's most promising fintech and financial service innovators," said, Natsuki Sugai,  founder and managing partner at UNLEASH Capital Partners.

UNLEASH Capital Partners, co-managed by Sugai and Gojo & Company Inc, plans to deploy the capital across 12 to 15 investments, with cheque sizes ranging between Rs 5 crore and Rs 18 crore per deal, it said in a statement.

The venture capital firm has the flexibility to either lead funding rounds or participate alongside other investors sharing similar objectives, said Sugai. The firm has already deployed capital in seven startups from this fund.

Last month, the venture capital firm led a funding round in fintech startup Zype. Earlier it invested in full-stack agri-tech platform Ayekart and non-bank lender CredResolve.

India's fintech sector continues attracting significant venture capital interest, with the country's digital payments ecosystem processing billions of transactions monthly. 

Indian fintech majors such as Pine Labs and Groww, which grew on the back of venture capital funding, are soon floating their initial public offerings (IPOs), giving an exit window to its early investors. In the past, venture capital-backed Paytm, Policybazaar and MobiKwik have gone public.