New Delhi, Aug. 18 -- Early-stage venture capital firm Artha India Ventures, which has previously backed startups such as Rapido, Biryani By Kilo, has closed its follow-on investment vehicle Artha Select Fund (ASF) that it launched to back winners from its existing portfolio.

The micro-VC collected Rs 432 crore (around $49 million) in commitments for the fund, surpassing its original target of Rs 330 crore, it said in a statement on Monday.

Domestic limited partners comprise about 80% of the fund's capital, while remaining 20% has come from investors in Singapore, UAE, Mauritius, Hong Kong, Africa, and the U.S. The investor base includes family offices and high-net worth individuals.

While Artha India Ventures, the single-family office of entrepreneur Ashok Kumar Damani, has committed nearly 10% of the fund, names also include Atul Kirloskar's Family Office, DSP Family Office, Shahi Exports, HIRA Group, and Anikarth Ventures.

"ASF allows us to stay invested in our most promising companies well into their scale-up phases," said Anirudh A. Damani, Managing Partner of Artha Venture Fund & Artha Select Fund. "India has no shortage of promising ventures, but far too many face a capital drought between Series A and C. ASF ensures our winners have the firepower, strategic guidance, and operational backing to compete globally while preserving founder ownership and focus."

Through the fund, Artha India Ventures will back the top 15% of performers from its existing portfolio of more than 135 companies. This will translate into Series B and C cheques of around Rs.20 crores (around $2.29 million) each, for 12-14 winners over the next four years, it said in the statement. It will invest the capital in startups across its existing funds Artha Venture Fund I and Artha Continuum Fund, and its upcoming Artha Venture Fund II.

The investment vehicle takes Artha's total assets under management (AUM) past Rs 1,200 crores. So far, the firm has made more than 135 investments, and has already made 33 exits including Exotel and Biryani By Kilo.

Published by HT Digital Content Services with permission from VC Circle.