Early-stage venture capital firm Cactus Partners is gearing up to launch its second investment fund with a target corpus of ₹1,600 crore, signalling its continued confidence in India’s deeptech and technology startup ecosystem.
The new fund is expected to back 13–15 startups over the next few years, with the firm focusing on businesses that have already demonstrated strong product-market fit and sustainable business fundamentals.
According to a Financial Express report, Cactus Partners General Partner Amit Sharma said the firm plans to invest ₹60–100 crore as its initial cheque size. The fund will primarily target startups raising $10–20 million, leading funding rounds with investments of $6–10 million while bringing in additional investors to complete the round.
Cactus Partners has built its investment strategy around sectors that are shaping the future of technology and manufacturing. Its focus areas include advanced manufacturing, enterprise technology, consumer technology, robotics, semiconductors, defence, spacetech, electronics manufacturing, artificial intelligence (AI), machine learning, cybersecurity, healthtech, and vertical software.
The firm’s maiden fund, with a corpus of ₹630 crore, has already been fully deployed across 13 portfolio companies, including Lohum, Bellatrix Aerospace, Kapture CX, Indigrid Technologies, and Brandworks Technologies.
Over the past 15 months, Cactus Partners has strengthened its portfolio through fresh investments in Bellatrix Aerospace, Showroom B2B, and Brandworks Technologies, while also participating in follow-on funding rounds of its existing portfolio companies.
Rather than chasing sectors driven by inflated valuations, the firm says it remains committed to investing in startups that demonstrate strong execution, healthy unit economics and long-term growth potential. Looking ahead, Cactus Partners is also exploring investment opportunities in emerging areas such as cybersecurity and quantum technologies.
With a significantly larger second fund, Cactus Partners is positioning itself to play a bigger role in supporting India’s next generation of technology-led startups.
-By Muskan Dengra
