Artha Select Fund closes at Rs 432 Cr to back top portfolio startups

Artha India Ventures has closed its new Artha Select Fund (ASF) at ₹432 crore, which is 31% higher than its original target of ₹330 crore. The fund will support the top 15% of Artha’s 135 portfolio startups, offering Series B and C investments of about ₹20 crore each.

Over the next four years, ASF aims to invest in 12–14 startups in sectors like spacetech, fintech infrastructure, premium consumer goods, and applied AI. The fund acts as a capital bridge for India’s “missing middle,” where many Series A–C startups face challenges in raising growth capital.

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“For founders, it means they don’t have to run to market every time they want to raise. They already know there’s an investor on the board willing to put more capital,” Anirudh A Damani, managing partner of the fund, said.

He also added that because Artha has been working with these startups for 3–4 years, it spends less on due diligence and has stronger relationships with founders compared to traditional Series B/C investors.

Artha said that Indian family offices and ultra-rich individuals make up 80% of ASF’s capital, while the rest comes from global LPs in places like Singapore, UAE, Mauritius, Hong Kong, Africa, and the US. Artha itself has put in about 10% of the fund.

ASF’s closing comes just days after Speciale Invest raised ₹600 crore for its third fund, showing a renewed interest from LPs after a slow year. “Fundraising was tough for over a year, but since March 2025 it has become easier,” Damani said.

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Launched in 2018, Artha Venture Fund was one of India’s first micro VC funds and now has 33 exits with assets under management crossing ₹1,200 crore. Damani added that the micro VC model, pioneered in 2017–18, is now proving successful as family offices and smart investors see higher returns from smaller funds with lower costs.

Through its funds, Artha has invested in startups like OYO Rooms, rapido, purplle, and Leverage Edu. Under ASF, it has already reviewed six startups and chosen one — spacetech company Agnikul Cosmos — with an investment of ₹20–40 crore.