Artha India Ventures (AIV) has successfully closed its follow-on fund, known as Artha Select Fund (ASF), with a total of Rs 432 crore, which is 131% above its initial target of Rs 330 crore. This achievement has enabled Artha to surpass Rs 1,200 crore in total Assets Under Management.
Highlights
Investment Strategy of Artha Select Fund
The Artha Select Fund will specifically invest in the top 15% of the best-performing companies from Artha’s existing portfolio, which includes over 135 firms across the Artha Venture Fund I, Artha Continuum Fund, and the upcoming AVF II. The fund intends to make investments of around Rs 20 crore each in Series B and C funding, targeting 12 to 14 winning companies over the next four years.
Proven Track Record and Funding Gap Solutions
With 33 exits achieved to date, Artha has established a strong reputation for identifying and supporting category leaders. The ASF serves as a critical capital bridge from early-stage investment to growth, addressing the funding gap often referred to as India’s “missing middle.” Many Series A to C companies face stagnation due to insufficient capital and a lack of operational assistance.
Source of Funding and Notable Backers
According to information from Artha, approximately 80% of the fund’s capital is sourced from Indian family offices and ultra-high-net-worth individuals, while the remaining 20% comes from global limited partners based in Singapore, UAE, Mauritius, Hong Kong, Africa, and the United States. AIV has also committed nearly 10% of the total fund. The ASF boasts a lineup of prestigious backers including Atul Kirloskar’s Family Office, DSP Family Office, Shahi Exports, HIRA Group, and Anikarth Ventures.
Commitment to Promising Ventures
Anirudh A. Damani, the Managing Partner of Artha Venture Fund & Artha Select Fund, stated that the ASF enables continued investment in their most promising companies during their scaling phases. He highlighted that India is rich in potential ventures, yet many confront a capital drought between Series A and C. ASF aims to ensure these successful companies possess the necessary resources, strategic guidance, and operational support to compete on a global scale while maintaining founder ownership and focus.
Portfolio Highlights and Recent Evaluations
Through various funds, Artha has invested in well-known startups like OYO, Rapido, Purplle, and Leverage Edu. So far, under the new fund, six companies have been evaluated, with spacetech startup Agnikul Cosmos being selected for an investment commitment ranging from Rs 20 to 40 crore.
The conclusion of ASF’s fundraising comes shortly after Speciale Invest successfully raised Rs 600 crore for its third fund.