VC firm AJVC raises Rs 165 crore in maiden fund; crosses Rs 100 crore target

AJVC, an early-stage venture capital firm founded by Aviral Bhatnagar, who formerly led enterprise software and artificial intelligence (AI) investments for Venture Highway (now merged with General Catalyst), has raised Rs 165 crore for its maiden fund against an initial target of Rs 100 crore.

The fund was launched in August last year and has made 25 investments in startups across sectors such as AI, B2B, consumer brands, and consumer tech, Bhatnagar told ET.

The fund, primarily made up of domestic capital, counts Indian family offices, multiple founders of Indian tech unicorns, and top executives at large investment firms as limited partners. It was launched in September last year and made its first close in November.

Bhatnagar said that of the 25 companies AJVC has invested in, 40% are AI companies, 30% consumer tech entities, about 20% consumer brands, and the remaining business-to-business platforms.

The startups it has backed so far include Ranchi-based fast-moving consumer goods (FMCG) company Mithila Foods, which is clocking Rs 3 crore in annual revenue; ethnic jewellery brand Nuyug; Guwahati-based Chop Finance, an AI platform for finance and accounting professionals; and Bengaluru-based TruFides, which is building AI agents for compliance and fraud detection.

“The fund was significantly oversubscribed, but we chose to remain disciplined, closing at nearly Rs 165 crore. India is witnessing an unprecedented wave of first-time entrepreneurs…and we are building a new-age investment firm, where technology powers deeper diligence, smoother fundraising, and scalable support,” Bhatnagar said, adding that the firm received interest for commitments to the tune of Rs 200 crore.

ET had first reported about Ajvc’s launch in August last year.

In addition to the 25 startups it has backed, AJVC plans to back another 60-70 ventures by early 2028.

“The pace of innovation at pre-seed in India is relentless and accelerating. With this close, we aim to match the energy of Indian founders with equally agile, tech-enabled venture processes, reimagining what early-stage investing can be in the world’s most dynamic startup market,” Bhatnagar said.

AJVC’s fund close comes at a time when a wave of new domestic funds and micro venture capital (VC) firms have entered the Indian market. These investors typically support startups at a very early stage and provide smaller cheques compared to traditional VC firms. The rise of micro VC funds — usually leaner in size and often driven by a single partner — has broadened the spectrum of risk capital available to Indian startups.

Among the more established micro VC players are Vaibhav Domkundwar’s Better Capital, Java Capital with its deeptech focus, Delhi-based Sauce VC that invests in consumer brands, and the $25 million Neon Fund, which is centred on enterprise software.