Artha Venture Fund II: Securing Rs 250 Crore for Future Investments

Artha Venture Fund II has successfully secured the first close of Rs 250 crore for its second micro venture capital fund, marking a significant step forward in its investment strategy. The target corpus of this fund is set at Rs 500 crore, complemented by an additional Rs 100 crore green-shoe option.

Investment Focus Areas of AVF II

AVF II is set to invest in 36 seed-stage startups, concentrating on key areas such as premium consumption, fintech infrastructure, applied AI, and deep tech. The initial investments will average around Rs 4 crore during early funding rounds, with further investments ranging from Rs 8 to 16 crore allocated to selected firms.

Ownership and Deployment Strategy

The fund aims to maintain an ownership stake of 15 to 20% in its portfolio startups and plans to follow a four-year deployment cycle. The majority of the investors in this initial close are Indian limited partners, which consist of family offices and exited founders, while about 10% of the capital originates from international investors.

Commitment to Early-Stage Startups

The venture capital firm continues to commit to early-stage startups that are innovating within scalable technology-driven businesses. The fund is particularly keen on supporting founders who are tackling fundamental issues within digital infrastructure and technology-centric sectors.

Previous Investments by Artha India Ventures

Artha India Ventures boasts a diverse investment record, having backed numerous early-stage startups in various sectors including fintech, SaaS, and consumer goods. Notable companies in the firm’s prior portfolio include Agnikul, LenDenClub, and PiggyRide.