Tapping early-stage tech companies – Arkam Ventures announces launch of $180 million fund

• With Fund II, Arkam Ventures intends to maintain its strategy of creating a focused portfolio based on well-defined investment theses.
  
• Fund II aims to construct a portfolio consisting of 20 technology start-ups.
  
• The firm also plans seeking out potential category leaders in emerging domains such as manufacturing tech and electric vehicles (EVs).
  

Arkam Ventures, an early-stage technology venture capital fund, has announced the launch of its Fund II, aiming to raise $180 million. With this new fund, Arkam Ventures intends to maintain its strategy of creating a focused portfolio based on well-defined investment theses.

The firm plans to further explore its current sectors of interest while also seeking out potential category leaders in emerging domains such as manufacturing tech, and EVs. The firm will continue its emphasis on financial services, skill development, food, agriculture, healthcare, mobility, and Software-as-a-Service (SaaS) ventures, in the area of middle-India digitisation.

Fund II will aim to construct a portfolio consisting of 20 technology startups. The limited partner (LP) base for this fund will be composed of global institutional investors, and family offices. Notably, Arkam's previous Fund I had attracted investors such as British International Investment, SIDBI, Evolvence, Quilvest, US institutional investors, and significant family offices.

Arkam Ventures, established in 2020 by venture capitalists Rahul Chandra, and Bala Srinivasa, focuses on investing in the significant middle India market. In contrast to many other investors who primarily support startups catering to the affluent population, Arkam focuses on a new generation of founders dedicated to developing technology-driven solutions. These startups perceive an opportunity to leverage digital platforms, and India's digital infrastructure (such as UPI, eKYC, and Aadhaar) along with the accelerated digital adoption caused by the Covid-19 pandemic. They aim to transform the delivery of essential products and services, making them more accessible, efficient, and affordable.

Through its initial Fund 1, valued at USD 106 million, Arkam has assessed prospects in sectors including financial services, skill development, food, agriculture, mobility, healthcare, and Software-as-a-Service (SaaS). Its portfolio currently comprises 16 innovative companies, including fintech firms like Jar and Kreditbee, food/agritech companies like Jai-Kisan and Jumbotail, skill development companies like Smartstaff and Cusmat, as well as SaaS companies like Spotdraft and Signzy.

Says Rahul Chandra, Managing Director, Arkam, “Six of Arkam's Fund I investments are already leaders in their respective categories. They are redesigning markets with a tech-based business model and scaling rapidly to serve hundreds of millions of customers. We believe the middle India digitisation and SaaS opportunity will lead to the creation of 100 new mega businesses over the next decade.”

Arkam plans to utilise Fund II to invest a greater amount of capital, and support its most promising founders, and companies during subsequent funding rounds. Additionally, the fund aims to enhance its portfolio advisory services, specifically concentrating on areas such as organisational structure, go-to-market strategies, and finance and operational aspects.