Micro venture capital firm Artha Venture Fund has pulled the final curtain off of its maiden fund, having raised a total of ₹225 crore to invest in promising early stage startups in the country.
This sum includes ₹25 crore that has been raised in the form of the company’s green shoe option (a form of investment which allows investment banks to support the share price in, say, an initial public offering, after the offering without putting their own capital at risk).
The capital thus raised will be used as investment across a number of startups in early stages of growth, with high potential for exponential growth. These will include seed ,pre-Series A, Series A fundings, spanning across business-to-business, business-to-consumer, as well as Direct-to-consumer companies. The gaming sector can also expect to see the company taking an interest in it.
Artha was founded by Anirudh Damani, who now serves as the managing partner at the firm. Involved in spotting and supporting “passionate firms” who are need of financial assistance, the Fund has reportedly set aside a full two-thirds of its newly gained funding for investing in its major partners.
Speaking to the press, Damani said, “We are looking to invest in around 40 companies. Then will double-down on 20 -owing winner companies and will further invest the top ten out of those. We expect to fully deploy the capital by FY23.”
While most of the other fundraisers in the news involve major investment firms and industry giants, the funding at Artha comes with a twist. It has been revealed that more than 50% of the money raised has in fact come from family offices in the United Arab Emirates, United States, Russia, Morocco, Israel, among others. Ultra-high net-worth individuals (UHNIs) and the Small Industries Development Bank of India (SIDBI), each contributed around 20% of the total, towards the fundraiser.
Damani, who has had past experience in the running the family office at Artha Venture India, has his eyes set on making the Fund one of the prime investment agencies in the country. The company has previously closed the second round of its debut fundraiser back in 2009, having raised ₹100 crore. It has invested in a number of firms till date, including the Series A round at Agnikul, among others, ranging from Daalchini, PiggyRide, GetWork, and LenDenClub.
Agnikul, one of the most prominent names in Artha Venture India’s portfolio, has been turning heads in the industry, thanks to its innovative space-tech solutions. Recently, the company bagged $11Mn, and is now eyeing 2022 for the first launch of its smallsat launch vehicle.
