New Delhi, Jan. 21 -- Early-stage venture capital firm Exfinity Ventures, which backs business-to-business (B2B) technology and deep-tech startups, has launched its fourth flagship fund and begun fundraising for the vehicle.

The Bengaluru-based firm, which closed its third fund in 2023 at Rs 500 crore ($54.6 million), is reportedly targeting a corpus of Rs 1,100 crore for Fund IV.

Exfinity, which invests in enterprise-tech and deep-tech across the US-India-Singapore corridor, said the new fund will also focus on emerging sectors such as physical AI and robotics, next-generation semiconductors, advanced cybersecurity, generative and agentic AI, quantum computing, life sciences, climate technology, and mobility, areas where global acquirers are actively seeking innovation.

The firm also said it has returned the entire initial capital from Fund II, aided by multiple exits over the past 12 months. Exfinity had raised Rs 300 crore for Fund II, which it closed in 2016.

Most recently, in October 2025, AI-powered logistics technology company Locus, first backed by Exfinity in 2016, was acquired by Ingka Investments, the investment arm of Ingka Group, the world's largest IKEA retailer. Exfinity had led Locus's $2.75 million Series A round in May 2016 and made follow-on investments in subsequent rounds, including a 2019 Series B alongside Tiger Global and Falcon Edge Capital.

Earlier, in February 2025, VCCircle also reported Exfinity's exit from California-based AI chip startup Kinara.ai, which was acquired by Netherlands-based NXP Semiconductors NV. The deal valued Kinara at $307 million (about Rs 2,680 crore then) in an all-cash transaction. Exfinity first invested in Kinara in 2019 as part of its Series A round and made follow-on investments in its $35 million Series B round led by Tiger Global in 2022, investing about $3 million across two rounds from Fund II.

In 2022, Exfinity also clocked a partial exit from AI-led cloud marketing startup Pixis Software when the company raised $100 million (Rs 745 crore) in a Series C round led by SoftBank Vision Fund 2. The deal generated over a 60x multiple on Exfinity's invested capital, even as it retained a significant ownership stake.

"This series of strategic acquisitions demonstrates a fundamental shift in how global enterprises engage with Indian deeptech," said Chinnu Senthilkumar, managing partner at Exfinity Venture Partners. "We are proud to have returned capital to our LPs within the fund lifecycle while continuing to hold a meaningful upside. These outcomes validate our long-held belief that India can produce globally competitive deep-tech companies with real, repeatable exit pathways."

Exfinity invested in nearly 15 companies through Fund II across B2B, AI, cybersecurity, and deep technology. Other portfolio companies from the fund include CloudSEK, Edge Networks, Hippo Video, and Log9.

The firm has also clocked an exit from its third fund. In March 2025, London-based GlobalData acquired Singapore-headquartered AI Palette, which was part of Exfinity's 2020-vintage fund. Exfinity had co-led the company's $4.4 million Series A round with pi Ventures in August 2021 and made follow-on investments in later rounds.

"Repeated acquisitions of Indian-origin deep-tech companies by Fortune 500 and multinational buyers show that strategic M&A has become a highly viable and lucrative exit path, on a par with IPOs, growth-stage up-rounds, and private equity outcomes,"said Shailesh Ghorpade, managing partner at Exfinity Venture Partners. "For founders and investors alike, this opens up a much broader, more reliable set of global liquidity options."

Founded in 2014, Exfinity is a B2B-focused VC firm that invests in early-stage startups building globally relevant technology from India.

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