Artha India Ventures (AIV) has completed the final close of its follow-on vehicle, the Artha Select Fund (ASF), at ₹432 crore. This close beats its original target of ₹330 crore by 31%. With this achievement, AIV now manages assets worth more than ₹1,200 crore. The fund will back the strongest performers from Artha’s large portfolio and help them scale during their critical growth stages.
A Strong Step in Venture Capital Expansion
The Artha Select Fund stands out as a “winners-only” fund. It will invest in the top 15% of companies from Artha’s portfolio of more than 135 startups. These companies come from Artha Venture Fund I, Artha Continuum Fund, and the soon-to-be-launched Artha Venture Fund II.
ASF will deploy around ₹20 crore each in 12 to 14 startups over the next four years. The focus will be on Series B and C rounds, where startups often struggle to find sufficient funding and support. By doing this, ASF directly addresses what many call India’s “missing middle.”
The “Missing Middle” Problem in India
Many startups in India successfully raise seed or Series A funding. But when they reach the growth stage, they often stall. The capital needed at Series B and C is larger, yet many investors hesitate to step in. As a result, promising startups struggle to cross this gap and lose momentum.
ASF seeks to change that. By providing growth capital, guidance, and operational support, the fund helps ensure that strong companies in Artha’s portfolio do not lose their chance to scale into global leaders. This approach ensures that early investment success stories continue to grow instead of fizzling out.
Building on a Proven Legacy
Artha’s flagship fund, Artha Venture Fund I, made history as India’s first SEBI-registered microVC. The fund has already built a strong track record. It ranks No. 1 in India for 2019 vintage returns and No. 2 worldwide. This global recognition shows the strength of Artha’s investment model.
ASF builds on this track record. It extends Artha’s role from seed-stage supporter to growth-stage partner. Instead of exiting early, Artha now doubles down on its winners, supporting them in later funding rounds and guiding them through global expansion.
The Vision of Leadership
Anirudh A. Damani, Managing Partner of Artha Venture Fund and Artha Select Fund, explained the strategy clearly. He said ASF will allow Artha to stay invested in its most promising companies well into their scale-up phases. Damani stressed that the fund is not only about money. It also brings strategic guidance, operational resources, and protection for founder ownership.
This means that ASF will not just write checks. It will stand beside founders, help them plan expansion, and ensure they keep meaningful control of their companies as they grow. That combination of capital and operational support gives ASF a unique position in the Indian venture ecosystem.
Who Is Backing the Fund?
The fund has attracted strong support from both Indian and global investors. Indian family offices and ultra-high-net-worth individuals contribute 80% of the capital. The remaining 20% comes from global Limited Partners across Singapore, UAE, Mauritius, Hong Kong, Africa, and the United States.
The sponsor, Artha India Ventures itself, has committed nearly 10% of the fund. This ensures that Artha has strong skin in the game.
ASF’s backers include prominent names such as:
- Atul Kirloskar’s Family Office
- DSP Family Office
- Shahi Exports
- HIRA Group
- Anikarth Ventures
These names add weight and credibility to ASF. Their presence shows the confidence large business families and global investors have in Artha’s ability to identify winners and create returns.
The Investment Strategy
ASF has a clear strategy: back the winners. Out of the 135+ companies in Artha’s portfolio, only about 15% will qualify. This ensures that only the strongest startups with proven execution and growth potential will get additional backing.
The fund will invest ₹20 crore per company in 12 to 14 portfolio startups. The focus on Series B and C stages means the fund targets companies that already have product-market fit, a growing customer base, and solid revenue traction.
The money will go into fueling scale: expanding markets, building technology, hiring talent, and entering new geographies. By targeting this growth phase, ASF aims to multiply the impact of its earlier seed-stage investments.
Why This Matters for India’s Startup Ecosystem
India has one of the world’s fastest-growing startup ecosystems. Yet the funding gaps between early stage and late stage often limit progress. Many startups with strong potential cannot raise the capital they need at the right time. ASF provides a solution to this structural issue.
By focusing on its own winners, ASF also reduces risk. The fund does not invest blindly in new names. It already knows these startups, has supported them since early stages, and has a clear view of their capabilities. That reduces uncertainty and increases the chances of success.
This approach strengthens the overall ecosystem. When more startups survive the “missing middle,” India gains more scale-ups, more global challengers, and more success stories that inspire the next generation of entrepreneurs.
Global Ambitions
ASF’s design also reflects India’s growing global ambitions. Damani has emphasized that the fund will help portfolio companies scale not only within India but also worldwide.
With capital, guidance, and operational resources, startups will have the tools they need to expand into new markets. Many Indian startups already target regions like Southeast Asia, the Middle East, Africa, and even the United States. ASF’s global network of investors adds extra support for such cross-border growth.
The Role of Family Offices
Family offices play a crucial role in this fund. With 80% of capital coming from Indian family offices and ultra-HNIs, ASF shows how private wealth is shaping the future of Indian venture capital.
Family offices provide patient capital. They invest with long-term horizons and value creation in mind. Their involvement gives ASF the stability and flexibility it needs to support startups over multiple funding rounds and across market cycles.
Looking Ahead
With ASF’s final close, Artha India Ventures has firmly established itself as a multi-stage venture player. It no longer stops at seed or early stage. It can now support startups through growth phases and even prepare them for global expansion or eventual public markets.
Over the next four years, the 12 to 14 companies that ASF backs will become the face of Artha’s strategy. Their success will showcase the power of focusing on winners and doubling down when it matters most.
If these companies achieve scale, they will not only reward ASF’s investors but also strengthen India’s position as a hub for global innovation.
Conclusion
The ₹432 crore close of the Artha Select Fund marks a new chapter for Artha India Ventures. Surpassing its target by 31% reflects the confidence investors have in the firm’s track record and vision. By investing in its top performers, ASF bridges India’s “missing middle” and ensures that strong startups have the capital and support to scale globally.
With strong backing from family offices, global LPs, and Artha itself, the fund stands on solid ground. Its strategy of focusing on proven winners, coupled with operational guidance, gives it a unique position in India’s venture capital landscape.
ASF does not just invest money—it invests belief in India’s top founders and equips them to build companies that can compete worldwide.
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