Raises ₹250 crores in First Close

₹250 crores raised in the first close of ₹500 crore AVF II

Artha India Ventures’ total AUM crosses ₹1,500 crore

AVF I ranked #1 in India and #2 globally by Preqin for the 2019 vintage

Kochi: Artha India Ventures (AIV)  announced the first close of ₹250 crores for its second early-stage microVC fund, Artha Venture Fund II (AVF II), targeting a total corpus of ₹500 crores with a ₹100 crore green-shoe option. The fund has already secured more than 50% of its target commitments, reflecting the strong investor confidence in Artha’s conviction-led strategy and proven track record.

AVF II will invest in 36 seed-stage startups across 4 themes viz premium consumption, fintech infrastructure, applied AI, and deep tech, deploying ₹4 crore initial cheques and doubling down with ₹8–16 crore follow-on investments under its proprietary 1–2–4 model. The fund targets 15-20% ownership in its top portfolio companies and will operate on a four-year deployment cycle.

Commenting on the announcement, Anirudh A. Damani, Managing Partner, Artha Venture Fund said, “AVF II is launching at a time when the startup ecosystem is undergoing a reset. In the last 8 months, barring one, India has recorded fewer than 100 seed investments per month, the lowest in nearly a decade. More tellingly, the graduation rate from Seed to Series A, historically 1 in 9 startups or around 12–13% over 36 months - that rate has dropped to as low as 5-6% in recent months. That tells you how capital-starved the early-stage investment ecosystem has become.”

The fund’s capital base will remain ~80% domestic and ~20% global, with 90% of first-close commitments coming from Indian LPs, including family offices, and exited founders, and the remaining 10% from international investors. Early backers of AVF II include the Shahi Group, Narendra Karnawat (Glance Finance), DSP Family Office, and several founders from Artha’s earlier investments who have since achieved successful exits.

“What’s exciting for us as investors is that this environment filters out the noise. The tourist founders are gone; what’s left are serious entrepreneurs building sustainable, capital-efficient businesses. They’re focusing on raising from customers before VCs - that’s precisely the kind of DNA that builds vintage funds,” he further adds.

Photo: Anirudh A. Damani, Managing Partner, Artha Venture Fund