At Rs 432 crore, Artha India Ventures (AIV) closed its follow-on fund, Artha Select Fund (ASF), 131% higher than its initial target of Rs 330 crore. As a result, Artha now has more than Rs 1,200 crore in assets under management.
Key Highlights
- Artha Select Fund overshoots ₹330 Crore target, closes at ₹432 Crore to back top 15% startups.
- Fund will deploy approx. ₹20 Crore cheques in Series B/C rounds for Artha portfolio companies.
From Artha's current portfolio of more than 135 companies, which includes Artha Venture Fund I, Artha Continuum Fund, and the soon-to-be-launched AVF II, ASF will invest in the top 15% of performers. Over the following four years, the fund will issue Series B and C checks to 12–14 winners, each worth about Rs 20 crore.
Artha asserts that it has established a track record of identifying and developing category leaders, having completed 33 exits to date. By filling the "missing middle" funding gap in India, where many Series A-C companies stall because of a lack of operational support and limited capital, ASF builds a capital bridge from early-stage to growth.
Artha claims that 80% of the fund's capital is anchored by Indian family offices and ultra-high net worth individuals, with the remaining 20% coming from international LPs in Singapore, the United Arab Emirates, Mauritius, Hong Kong, Africa, and the United States. Sponsor AIV has contributed close to 10% of the fund. Well-known companies like Shahi Exports, HIRA Group, Anikarth Ventures, DSP Family Office, and Atul Kirloskar's Family Office are among the backers of ASF.
Also Read: Speciale Invest Closes Rs 600 Cr Fund III to Back Deeptech Startups
As the managing partner of Artha Venture Fund & Artha Select Fund, Anirudh A. Damani stated, "ASF enables us to remain invested in our most promising companies well into their scale-up phases." There are plenty of promising projects in India, but too many of them struggle to raise the fund they need to move from Series A to C. While maintaining founder ownership and focus, ASF makes sure our winners have the operational support, strategic direction, and firepower to compete internationally.
Startups like OYO, Rapido, Purplle, and Leverage Edu have received funding from Artha through its various funds. After evaluating six companies under the new fund, Agnikul Cosmos, a spacetech startup with an investment commitment of Rs20–40 crore, was the only one chosen.
Days after Speciale Invest raised Rs600 crore for its third fund, ASF closed.
