Artha India Ventures (AIV) has successfully completed the first close of Rs 250 crore for its second micro venture capital fund, Artha Venture Fund II (AVF II). The fund targets a total corpus of Rs 500 crore, with an additional Rs 100 crore green-shoe option to accommodate further investment demand.
AVF II will focus on seed-stage startups across four key sectors: premium consumption, fintech infrastructure, applied AI, and deep tech. The fund plans to deploy initial investments of Rs 4 crore in early-stage rounds, with follow-on funding ranging between Rs 8–16 crore for selected companies. The strategy aims to secure 15–20% ownership stakes in portfolio startups and operate on a four-year deployment cycle.
The majority of capital in the first close has come from Indian limited partners, including family offices and exited founders, while roughly 10% of the fund comes from international investors. AIV intends to continue backing early-stage, technology-led startups that address core challenges in digital infrastructure, fintech, AI, and other deep-tech domains.
Since its inception, Artha India Ventures has invested in several early-stage startups across fintech, SaaS, and consumer sectors. Its notable past portfolio includes Agnikul, LenDenClub, and PiggyRide, highlighting a focus on companies with scalable, technology-first business models.
AVF II represents a continuation of AIV’s mission to support high-potential founders and emerging startups in India’s rapidly growing technology ecosystem. By targeting early-stage ventures and providing both capital and strategic support, the fund aims to catalyze innovation in sectors critical to India’s digital and consumer economy.
Final Take:
With the first close secured, Artha Venture Fund II is positioned to fuel India’s next wave of innovative startups, combining financial backing with mentorship and strategic guidance to help founders scale and succeed.
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