Artha India Ventures’ second micro VC fund raises Rs 250 Cr

Artha India Ventures (AIV) has completed the first close of Rs 250 crore for its second micro venture capital fund, Artha Venture Fund II (AVF II). 

The fund has a target corpus of Rs 500 crore, with an additional Rs 100 crore green-shoe option.

AVF II will invest in 36 seed-stage startups across four focus areas such as premium consumption, fintech infrastructure, applied AI, and deep tech. The fund will deploy initial investments of around Rs 4 crore in early rounds, followed by additional investments of Rs 8–16 crore in selected companies.

The new fund aims to hold between 15–20% ownership in portfolio startups and is expected to operate on a four-year deployment cycle. Most of the investors in the first close are Indian limited partners, including family offices and exited founders, while around 10% of the capital has come from international investors.

The VC firm plans to continue backing early-stage startups that are building scalable technology-led businesses. The fund will focus on founders solving core problems across digital infrastructure and technology-first sectors.

Artha India Ventures has invested in multiple early-stage startups across sectors such as fintech, SaaS, and consumer goods. The firm’s past portfolio includes companies like Agnikul, LenDenClub, and PiggyRide.