Artha India Ventures Raises ₹250 Crore in First Close for Micro-VC Fund

Investor Base and Deployment Strategy

Of the commitments in the first close, 90% came from Indian limited partners, including family offices and exited founders, while 10% was contributed by overseas investors.

Early backers include notable names such as the Shahi Group, DSP Family Office, and entrepreneurs from previous Artha portfolios. AVF II will follow a four-year deployment cycle and has already warehoused five startups, with plans to grow its portfolio to ten companies by year-end. The final close is expected between March and June 2026.

Context and Outlook for Indian Seed Funding

AIV, which currently manages over ₹1,500 crore and has backed more than 135 startups to date, views AVF II as a timely countermeasure to the cooling trends in early-stage funding. The firm notes that seed investments in India have slowed significantly: now less than 100 deals per month, the lowest in nearly a decade and that the seed-to-Series A graduation rate has dropped to as low as 5–6%.

In this environment, AIV anticipates a “recalibration and resetting of valuations” over the coming year and sees AVF II’s deployment momentum as a way to support high-potential startups through leaner capital cycles.