According to a senior executive who spoke with ET, Artha Group is looking to close a Rs 450 crore opportunity fund to support winners from its current portfolio. The new vehicle, Artha Select Fund (ASF), has more than Rs 100 crore in commitments from current limited partners or sponsors of Artha Venture Fund (AVF), and it has a Rs 120 crore green shoe option.
Anirudh Damani-led ASF will make investments in growth rounds of businesses supported by AFV and Artha India Ventures.
ASF’s umbrella organization, the Mumbai-based Artha Group, has invested in more than 100 startups in countries like India, the UK, the US, Israel, Africa, and Africa.
Among the startups in its India portfolio are Oyo, Purplle, LeveragEdu, and Rapido. Family offices in the United States, United Arab Emirates, Israel, Russia, Morocco, and the Middle East, ultra-high net worth individuals (UHNIs), and the Small Industries Development Bank of India (SIDBI) helped AVF raise Rs 225 crore in June of last year. “We’ve successfully demonstrated significant value creation to our LPs. They were aware of the level of commitment we have to our startups, Damani said. “A large portion of our team manages portfolios, so they understand what we do for those companies, so they return, and many of them have increased their investment in that portfolio.” According to him, AFV has produced returns on invested capital (the value or performance of an investment relative to its initial cost) of 3.61x and an internal rate of return (IRR) of more than 120%. IRR is a tool used in financial analysis to calculate potential investments’ profitability. ASF was established by Artha Group with the goal of supporting its category-winning startups during their subsequent funding rounds. In the Series B round and the Series C round, this winners-only fund will invest up to Rs 20 crore each.
FAQ
- How many funds are looked at by the Artha Group?
Ans. Rs 450
- What is the full form of AVF?
Ans. Artha Venture Fund
- What is the full form of ASF?
Ans. Artha Select Fund