Arkam Ventures launches $180 million second fund

ETech-focused Arkam Ventures has launched its second venture capital fund of $180 million.

The firm, which has invested in companies such as Jar, Kreditbee, Jai-Kisan, Jumbotail, and Signzy from its first fund, will look to make early-stage bets in around 20 companies from the second fund that it expects to raise by the end of the year, senior fund official said.

Arkam Ventures will look at Series A to Series B stage investments across sectors such as financial services, skilling, food, agriculture, healthcare, mobility, and SaaS. “We will additionally focus on manufacturing tech and EVs as we believe that the growth in these sectors in recent years has thrown open a lot of investment opportunities,” said Bala Srinivasa, co-founder of Arkam Ventures.

The firm is likely to tap into its existing limited partners base of global institutional investors and family offices for the second fund as well. Some of its investors include British International Investment (BII), SIDBI, Evolvence, Quilvest, US Institutional Investors, and large family offices, Srinivasa said. Around 60% of the capital is expected to come from global investors, while the rest will be from DIIs, Srinivasa added.

Founded in 2020 by venture capitalists Rahul Chandra and Bala Srinivasa, Arkam is targeting middle-India opportunities, which means backing businesses focused on building tech-led solutions for the next 400 million Indians.

Driven by India’s digital rails (UPI, eKYC, Aadhar) and massive digital adoption during the covid-19 pandemic, these Middle India start-ups sense a generational opportunity to reimagine how essential products and services are delivered better, wider and cheaper using digital platforms. It had raised $110 million in its first fund.