In a significant boost to India’s early-stage startup ecosystem, Artha India Ventures (AIV) has announced the first close of ₹250 crore for its second micro venture capital fund, Artha Venture Fund II (AVF II).
With a target corpus of ₹500 crore and an additional ₹100 crore green-shoe option, the new fund reflects AIV’s growing confidence in India’s next wave of innovation. Over the next few years, AVF II will back 36 seed-stage startups operating at the intersection of premium consumption, fintech infrastructure, applied AI, and deep tech.
“India is at an inflection point where tech-led startups are solving deep, structural problems across sectors. AVF II is designed to identify and nurture these category-defining ventures early on,” shared a spokesperson from Artha India Ventures.
The fund plans to deploy initial investments of around ₹4 crore in early rounds, with follow-on rounds of ₹8–16 crore in select companies, aiming to hold 15–20% ownership in its portfolio. With a four-year deployment cycle, AIV is staying true to its commitment of patient, founder-focused investing.
Most investors in this close are Indian limited partners — including family offices and exited founders, with around 10% participation from international backers.
Staying consistent with its first fund’s philosophy, AIV continues to champion technology-first, scalable startups that tackle fundamental challenges in India’s digital infrastructure and innovation landscape.
Artha India Ventures has been an early supporter of several success stories, including Agnikul, LenDenClub, and PiggyRide, and aims to replicate that momentum through AVF II.
With the new fund, AIV reinforces its role as a catalyst for India’s emerging generation of startup founders — those building not just for profit, but for purpose and progress.
-By Muskan Dengra
