The total size of the Category II Alternate Investment Fund (AIF) is worth Rs 20 crore, with a green shoe option of Rs 10 crore.
Sharma is expected to be one of the primary contributors of the fund along with other external investors, according to a statement from the fund.
Further, the AIF is sponsored by VSS Investco Private Limited, an entity owned and controlled by Vijay Shekhar Sharma.
The Securities and Exchange Board of India (Sebi)-approved fund will focus on investing in companies incubated in India, and are building products and services for domestic audiences in the country.
“The Indian startup ecosystem has some of the brightest entrepreneurs in the world, and we have the potential to become a powerhouse of advanced technology and AI-driven innovations,” said Sharma “The launch of this fund is a continuation of my belief in supporting young and promising Indian founders, aligned with the fact that technology has a huge role to play in the development of the country.”
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In addition, Sharma is also expected to double down on his existing investments across consumer and business-to-business (B2B) segments through the new fund. According to research platform Tracxn, Sharma through VSS Investco has invested across at least 21 startups including electric vehicle manufacturer Ola Electric, edtechs LeverageEdu and Lido, spacetech startup Kawa Space among others.
Back in 2018, Sharma had teamed up with venture capitalist Shailesh Vickram Singh to launch Massive Fund, a stage-agnostic climate fund which looked to invest in startups solving for critical areas of food, agriculture, air and water pollution.
Pledging $150 million in support of environmental protection, Massive was also looking to invest across areas of renewable energy as well as recyclables.