“We are thematic investors. Right now, we are very excited about the Indian deep tech ecosystem,” said Anirudh Damani, MD of Artha Group, in an interview with CNBC-TV18. The fund also backs space tech, semiconductors, affluent Indian consumers, fintech infrastructure, and applied AI.
ASF’s strong response reflects high investor confidence, particularly from family offices exploring India’s startup ecosystem for the first time. “There is a lot of enthusiasm within family offices to participate in the Indian startup ecosystem. They may not want to take all the risk of seed, so they’ve decided to back something that is a winners-only fund,” Damani explained.
The fund focuses exclusively on the top 15% of Artha’s 135+ portfolio companies, providing Series B and C capital of around ₹20 crore each. Artha uses its proprietary Scout framework to identify winners—companies that solve real human problems, have optimised unit economics, possess a clear right to win, and are tech-enabled but not tech-first. By evaluating companies over 24 to 36 months in earlier rounds, the firm ensures capital is deployed for growth rather than survival.
ASF’s strategy is also informed by past learnings from 34 exits, including nine founder buybacks. Damani noted, “Not every company is meant to scale or be venture fundable… If a company is a great business but cannot achieve exponential scale, venture capital may not be the right fit.” This disciplined approach allows Artha to back companies with genuine potential for large-scale growth.
Looking ahead, Artha plans to expand globally, setting up entities in GIFT City and exploring opportunities in Africa, where Damani believes the market has significant potential. The firm is also considering new funds, including a second seed fund and micro-buyout strategies, with a long-term AUM target of ₹10,000 crore by 2032.
With ASF, Artha aims to bridge India’s “missing middle” funding gap, ensuring proven startups have the backing to scale globally while staying true to its winners-only, thematic investment philosophy.
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