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.
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.
“ASF allows us to stay invested in our most promising companies well into their scale-up phases,” said Anirudh A. Damani, Managing Partner of Artha Venture Fund & Artha Select Fund. “India has no shortage of promising ventures, but far too many face a capital drought between Series A and C. ASF ensures our winners have the firepower, strategic guidance, and operational backing to compete globally while preserving founder ownership and focus.”
OYO, Rapido, Purplle, and Leverage Edu are just a few of the startups that Artha has supported through its various funds. As of right now, the new fund has assessed six businesses and chosen only Agnikul Cosmos, a spacetech startup with a Rs 20–40 crore investment commitment.
After Speciale Invest raised Rs 600 crore for its third fund, ASF closed a few days later.
