Micro-Venture Capital Artha Venture raises INR 225 crore to close its Maiden Fund

Artha Venture Fund, a micro-venture capital fund based in Mumbai, has raised Rs 225 crore toward the final close of its first fund. This includes Rs 25 crore for the green shoe option.

The seed, pre-Series A, and Series A levels of growth in business to business (B2B), business to consumer (B2C), and direct to consumer (D2C) enablers will be targeted by the early-stage fund.

Artha had previously announced a Rs 100 crore second close in June 2019.

The fund was established in 2018. It has already made investments in Agnikul, LenDenClub, PiggyRide, Daalchini, and GetWork.

Founded by Anirudh Damani, Artha has earmarked around two-thirds of the capital for investing in its winners. “We are looking to invest in around 40 companies. Then, will double down on 20 fastest-growing winner companies and will further invest in the top ten out of those,” Damani told. “We expect to fully deploy the capital by FY23.”

Family offices in the United States, the United Arab Emirates, Israel, Russia, Morocco, and the Middle East have contributed roughly half of the new fund's capital. Around 20% has come from ultra-high net-worth individuals (UHNIs), with an equal amount coming from the Small Industries Development Bank of India (SIDBI).

“We will continue to scout for seed+ stage deals in our preferred investment themes of D2C, D2C enablers, and B2B. Another sleeping giant that has piqued our interest in the last 12 months is the gaming sector, especially for the masses,” Damani said.

According to Damani, the fund recently reinvested in Agnikul's Series A round and has six deals in the pipeline for the next few months.

Artha is the latest in a long line of India-focused funds to be raised.

A slew of funds has been raised from family offices and UHNIs as domestic investors become more active in early-stage investments. IIFL Special Opportunities Fund, Alteria Capital's second fund, Trifecta Capital and Stride Ventures' second fund, and Avataar Ventures are among them.