Artha India Ventures (AIV) announced the first close of ₹250 crore for its second early-stage microVC fund, Artha Venture Fund II (AVF II). The fund targets a total corpus of ₹500 crore, including a ₹100 crore green-shoe option, and has already secured over 50% of its target commitments, reflecting strong investor confidence in Artha’s conviction-led approach and proven track record.
AVF II plans to invest in 36 seed-stage startups across four sectors: premium consumption, fintech infrastructure, applied AI, and deep tech. It will initially allocate ₹4 crore per investment, followed by ₹8–16 crore in subsequent rounds, applying its proprietary 1–2–4 model. The fund targets 15–20% ownership in its leading portfolio companies and will operate on a four-year deployment cycle.
“AVF II is launching at a time when the startup ecosystem is undergoing a reset. In the last 8 months, except for one, India has recorded fewer than 100 seed investments per month, the lowest in nearly a decade. More significantly, the graduation rate from Seed to Series A, which has historically been 1 in 9 startups or around 12–13% over 36 months, has dropped to as low as 5–6% in recent months. That shows how capital-starved the early-stage investment ecosystem has become,” said Anirudh A. Damani, managing partner of Artha Venture Fund.
The fund’s capital composition will be approximately 80% domestic and 20% global, with 90% of first-close commitments from Indian LPs, including family offices and exited founders, and the remaining 10% from international investors. Early supporters include the Shahi Group, Narendra Karnawat (Glance Finance), DSP Family Office, and founders from Artha India Ventures’ earlier investments who have successfully exited.
“What’s exciting for us as investors is that this environment filters out the noise. The tourist founders are gone; what’s left are serious entrepreneurs building sustainable, capital-efficient businesses. They’re focusing on raising from customers before VCs—that’s exactly the kind of DNA that creates vintage funds,” he added.
AVF I’s portfolio of 32 companies includes Agnikul Cosmos, Everest Fleet, LenDenClub, Daalchini, InstaAstro, and GetWork, many of which have become category-defining leaders. With multiple exits and strong performance, the fund has set new benchmarks for early-stage investing in India.
“Our 2016 and 2017 portfolios demonstrated the power of investing in resilient founders during uncertain times—7 out of 7 exits in 2017 with a 111% IRR and 16x multiple, while our 2016 portfolio delivered nearly 21x returns. We see several parallels today and believe 2025 is shaping up to be another such once-in-a-decade opportunity,” Damani added.
AVF II will focus on fewer, high-conviction investments, actively supporting startups that are post-seed, post-revenue, and raising ₹4–10 crore rounds. The fund will deploy capital to consistently back breakout performers.
“Our goal is to double down on companies showing deep founder conviction, efficient capital usage, and clear revenue visibility. AVF II is not chasing volume; it’s chasing velocity, i.e., concentrated capital behind exceptional founders,” said Damani.
With a network of over 150 limited partners, co-investors, and global partners, Artha India Ventures provides mentorship, strategic guidance, and market access. The fund’s “family-office DNA” ensures a long-term outlook, supporting founders from seed stage to success. The Artha platform now manages ₹1,500 crores across multiple funds, with 135+ investments and 34 exits to date.
