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Micro VC Fund Raises Rs 250 Cr.

by Michael Brown - Business Editor
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Artha India Ventures Secures ₹250 Crore in First Close for Second Micro VC Fund

Artha India Ventures (AIV) today announced the completion of the first close of ₹250 crore (approximately $30 million USD) for its second micro venture capital fund, Artha Venture Fund II (AVF II).

AVF II is targeting a total corpus of ₹500 crore, with an additional ₹100 crore green-shoe option, bringing the potential fund size to ₹600 crore. The fund will focus on seed-stage investments in 36 startups across four key areas: premium consumption, fintech infrastructure, applied AI, and deep tech. Initial investments are planned at around ₹4 crore, with follow-on funding of ₹8–16 crore for promising portfolio companies. This influx of capital aims to bolster India’s burgeoning startup ecosystem, providing crucial early-stage funding.

According to AIV, the fund intends to secure between 15–20% ownership in its portfolio companies and operate on a four-year deployment cycle. The first close saw significant participation from Indian limited partners, including family offices and founders who have previously exited successful ventures, with approximately 10% of the capital originating from international investors. AIV has a history of backing early-stage companies, with previous investments including Agnikul, LenDenClub, and PiggyRide – examples of successful ventures in the Indian Venture Capital Association network.

The firm plans to continue supporting technology-led businesses addressing fundamental challenges in digital infrastructure and technology-first sectors. This latest fund builds on AIV’s existing portfolio and commitment to Startup India initiatives. Officials stated the firm will continue to deploy capital strategically to foster innovation and growth within the Indian startup landscape.

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