Artha India Ventures Nears Final Close for Growth Fund After Crossing Rs 400 Cr Mark

Artha India Ventures, known for backing OYO and purplle, is about to close its Artha Select Fund after securing commitments worth ₹400 crore.

According to Anirudh Damani, the firm is in talks with a few family offices to secure an additional ₹50 crore and expects to raise between ₹400–450 crore at the final close. 

The Artha Select Fund (ASF) will make follow-on investments in companies backed by its first fund, Artha Ventures Fund I, and will join Series B and C rounds with cheques of around $2.5 million each.

Mumbai-based Artha India Ventures has already made its first investment from the Artha Select Fund (ASF), writing a $2.4 million cheque for space tech startup Agnikul Cosmos as part of its Series B round, according to tracxn data. 

The firm had announced the fund’s first close at ₹330 crore in March this year.

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According to Damani, only high-potential startups will receive follow-on investments, as each will be carefully evaluated using the firm’s SCOUT^E™ framework during every funding stage. 

This framework helps track portfolio performance by assessing key factors—such as whether the startup solves a real human problem, is a category leader, has strong unit economics, is led by a capable and growth-minded founder, is tech-enabled or tech-first, and has clear potential to scale.

“We love tech-enabled companies. We don't like tech-first businesses, “ Damani added. 

Damani also mentioned that before increasing investment in a company, Artha prepares a note for its investment committee, explaining how the startup continues to meet the standards of its SCOUT^E™ framework.

“If at any point we feel in our follow-on round that SCOUT^E ™ is not being matched, then we look to exit the company, " he added.

“We have another four or five companies that are going to raise Series A rounds in the next 10-12 months, and that is where the bulk of the remaining capital will go,” he said. 

Damani shared that the firm plans to deploy the remaining capital over the next 12 months. Initially, Artha aimed to invest in 40 seed-stage startups, 20 at pre-Series A, and 10 at Series A. 

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However, due to more breakout successes than expected, the fund ended up backing 32 seed-stage startups, 16 at pre-Series A, and eight at Series A.

Artha India Ventures has also started warehousing startups in preparation for its next flagship fund, Artha Ventures Fund II. 

Earlier this month, its first fund—Artha Ventures Fund I (AVF1), focused on seed-stage investments—reported an impressive internal rate of return (IRR) of 61%, a key measure of long-term investment performance. 

Launched in FY19 and closed in July 2021, the ₹225 crore fund has invested over ₹175 crore across 32 seed-stage startups.

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