Arkam Ventures’ Fund II Targets $180 Million to Drive Sustainable Businesses and Middle India Digitization

Early-stage venture capital firm Arkam Ventures, co-founded by Bala Srinivasa and Rahul Chandra, has recently launched Fund II with a target corpus of $180 million. The firm remains dedicated to investing in sustainable businesses in sectors such as financial services, skilling, food, agriculture, healthcare, mobility, and software-as-a-service (SaaS). Rahul Chandra, Managing Director of Arkam, emphasises the importance of Middle India digitization, catering to the population with a family income ranging from Rs 4 lakh to Rs 20 lakh per year.

Key Highlights: Investing in Sustainable Businesses and Middle India Digitisation

  1. Arkam Ventures fund size, precisely fund II focus on $180 million, aiming on sectors like financial services, skilling, food, agriculture, healthcare, mobility, and SaaS.
  2. Middle India digitization plays a crucial role in Arkam Ventures’ investment strategy, catering to customers with a family income of Rs 4 lakh to Rs 20 lakh per year.
  3. Arkam Ventures’ portfolio consists of 16 startups across fintech, food/agritech, skilling, and SaaS sectors, including companies like Jar, Kreditbee, Jai-Kisan, Jumbotail, Smartstaff, Cusmat, Spotdraft, and Signzy.
  4. Fund II aims to deploy more capital and support founders and companies in follow-on rounds, with the aggregate market value of Arkam’s portfolio already exceeding $2.5 billion.
  5. The fund is expected to close by the end of the year and build a portfolio of 20 tech startups, attracting top-tier global institutional investors and family offices as limited partners.
  6. Arkam Ventures’ success in Fund I has created winning digital products for Middle India, reducing adoption friction and designing scalable business models.
  7. British International Investment, SIDBI, Evolvence, Quilvest, US Institutional Investors, and large family offices are among the investors supporting Arkam Ventures’ current and future funds.

Arkam Ventures Fund Size

Arkam Ventures has unveiled Fund II, a significant funding initiative with a target corpus of $180 million. This substantial fund size underscores the firm’s dedication to supporting and fostering innovative startups across diverse sectors such as financial services, skilling, agriculture, and healthcare. With this sizable capital infusion, Arkam Ventures aims to provide ample resources and financial backing to nurture the growth and development of promising ventures within the Indian startup ecosystem.

Empowering Tech-Led Solutions for the Middle-Class Population

Arkam Ventures, established in 2020, supports a new generation of founders focused on building tech-led solutions that cater to the middle-class population. With their foundation-first approach, Arkam helps portfolio companies create sustainable businesses by providing the right governance, organizational design, and go-to-market strategies.

Arkam Ventures Portfolio

Arkam Ventures’ portfolio comprises 16 startups from various sectors. They have invested in fintech firms like Jar and Kreditbee, food/agritech companies such as Jai-Kisan and Jumbotail, skilling companies like Smartstaff and Cusmat, as well as SaaS companies like Spotdraft and Signzy. These portfolio companies have successfully developed digital products for Middle India, employing strategies that reduce friction, build trust, and implement scalable business models.

Continued Support and Future Growth

With the launch of Fund II, Arkam Ventures plans to deploy additional capital and provide continued support to its founders and portfolio companies in follow-on rounds. The aggregate market value of Arkam’s existing portfolio currently exceeds $2.5 billion, highlighting the success of its investments. Fund II aims to build a portfolio of 20 tech startups, attracting top-tier global institutional investors and family offices as limited partners (LPs).

Strong Investor Base and Commitment

Arkam Ventures has garnered support from prominent investors for Fund I, including British International Investment, SIDBI, Evolvence, Quilvest, US Institutional Investors, and large family offices. The firm expresses gratitude to its limited partners (LPs) for their support and emphasizes the alignment of its investment thesis with the broader market trends. Arkam Ventures remains committed to fostering innovation and supporting the growth of the Indian startup ecosystem.

What Does it Mean for Indian Investors?

The launch of Arkam Ventures’ Fund II, targeting $180 million, brings promising opportunities for the Indian economy and investors. With a focus on sectors like financial services, skilling, food, agriculture, healthcare, mobility, and SaaS, the fund supports innovative startups catering to the middle-class population. This aligns with Middle India’s untapped potential, fostering digitization and tailored solutions. Arkam Ventures’ commitment to sustainable businesses and governance benefits portfolio companies, job creation, and economic growth. Fund II offers investors a chance to join the thriving Indian startup ecosystem, leveraging diverse sectors and Arkam Ventures’ successful portfolio. The involvement of top-tier global institutional investors and family offices highlights confidence in Arkam’s investment thesis and potential for significant returns in this dynamic market.

Sources: moneycontrol.com

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