Fund News
Artha India Ventures raises Rs.250-Cr in first close of Rs.500-Cr second microVC fund
Artha India Ventures has raised INR 250 crore for the first close of its second fund with a target corpus of INR 500 crore and a green-shoe option of INR 100 crore to back seed-stage startups. The fund’s limited partner (LP) base will constitute 80% of domestic capital and about 20% of foreign capital, with 90% of its first close commitments coming in from Indian LPs, including family offices and founders. The remaining 10% came in from international investors. Some of the fund’s early backers include DSP Family Office, Shahi Group, andl founders from Arthi’s earlier investments.The fund will look to invest in 36 seed-stage startups across four themes-premium consumption, fintech infrastructure, applied AI, and deeptech. Artha will look to write initial cheques of INR 4 crore and follow-on investments between INR 8 crore and INR 16 crore. The fund targets 15-20% ownership in its top portfolio companies and will work on a four-year deployment cycle.The firm’s second fund comes on the back of blockbuster returns recorded by the firm under its first fund with a target corpus of INR 225 crore, which was launched in FY19 and closed in July 2021. In June, the firm reported an internal rate of return of 61%, with its portfolio valuation surpassing INR 750 crore.
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