growX ventures launches new Rs 400 Cr fund
The firm’s Fund II will expand from seed stage startups to early growth stage startups, with a focus on Series B investments.
Deeptech focused venture capital firm, growX ventures, has launched Fund II with a target corpus of Rs 400 crore.
In a shift from its traditional investment strategy, the new fund will expand from seed stage startups to early growth stage startups, with a focus on Series B investments.
Under the new fund, growX plans to write cheques of up to Rs 10 crore in seed rounds as a lead or co-lead investor and to deploy Rs 20 crore to Rs 30 crore in Series B rounds.
The firm aims to back 20-24 startups across sectors such as semiconductors, defence technology, space technology as well as fintech startups, health tech companies.
“With Fund II, we’re doubling down on our belief in India’s deeptech and B2B (business-to-business) sectors. We’re confident that the next wave of unicorns, building for global markets, will emerge from this space,” said Ashish Taneja, Founder and CEO at growX ventures.
Fund II's fund’s first close is expected by the end of this year.
growX ventures has made 46 investments since 2012, in companies such as Pixxel, Locus, and Progcap.
Most recently, the firm participated in the $6.3-million funding round in climate financing platform Two Point O Capital, which was led by VC firm Omnivore.
The transformation in the firm’s investments strategy to include early growth stage investments comes amidst rising interest in growth-stage Indian startups.
Growth-stage investments, which include investments in Series B and C rounds, have seen an uptick this year, touching $3.5 billion across 209 deals in the first 11 months of 2024, compared with $3.4 billion across 225 deals in the previous year. This signals strong investor confidence in startups that have an established product and customer base.
Edited by Swetha Kannan