Arkam Ventures Launches $180 Million Fund for Early-Stage Tech Companies

Arkam Ventures, an early-stage technology venture capital fund, has unveiled the initiation of its Fund II, with a target of raising $180 million. The fund aims to adhere to its strategy of building a focused portfolio based on well-defined investment theses.

Investment Focus

The firm intends to delve deeper into its existing sectors of interest while also scouting for potential category leaders in emerging domains like manufacturing tech and electric vehicles (EVs). It will continue to prioritize financial services, skill development, food, agriculture, healthcare, mobility, and Software-as-a-Service (SaaS) ventures, particularly in the realm of digitization for middle India.

Portfolio Construction

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

Arkam Ventures’ Approach

Established in 2020 by venture capitalists Rahul Chandra and Bala Srinivasa, Arkam Ventures focuses on investing in the significant middle India market. Unlike many other investors, Arkam supports startups catering to the new generation of founders dedicated to developing technology-driven solutions. These startups aim to leverage digital platforms and India’s digital infrastructure, along with the accelerated digital adoption spurred by the Covid-19 pandemic, to transform the delivery of essential products and services.

Fund I Success and Portfolio

Through its initial Fund I valued at USD 106 million, Arkam has evaluated prospects in sectors including financial services, skill development, food, agriculture, mobility, healthcare, and 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.

Future Plans

Rahul Chandra, Managing Director of Arkam, highlights the success of six Fund I investments, already leading in their respective categories. He envisions the middle India digitization and SaaS opportunity to foster the creation of 100 new mega businesses over the next decade. Fund II will allow Arkam to deploy a larger capital amount to support promising founders and companies during subsequent funding rounds. Additionally, the fund aims to enhance its portfolio advisory services, focusing on areas such as organizational structure, go-to-market strategies, finance, and operational aspects.